Daily Strategy for Investors on January 22, 2021

Asia Wealth Securities (AWS) released an analysis for the trading session on January 22, 2021 indicating the essential events in the stock market as follows: 

 

Investment Ideas:

Today’s investment overview – AWS expects the SET today (22 Jan) to have buying force from foreign investors as a supporting factor. In the short-term, the SET Index still has some pressure from concern that SET will review the Free Float criteria, including indexing using Free Float Adjusted Market Capitalization criteria instead of Full Market Capitalization. 

This will affect the SET50 and SET100 stocks with low free float, as well as short-term pressures from crude oil prices down to negative sentiment to energy stocks today. 

AWS maintains its investment strategy as before, recommending selling and taking profit at full value or exceed the fundamental value. While new investment rounds, for short-term investors, focus on speculation on stocks with positive support based on AWS Core Investment.

 

WTI crude oil for March delivery closed at USD53.13 per barrel, down 18 cents (-0.3%). The American Petroleum Institute (API) Crude Oil Reserve reported a 2.6 million barrel increase in U.S. crude oil reserves last week (ending 15 Jan), contrary to Market Consensus is expected to fall by 1.2 million barrels. 

However, it needs to follow U.S. crude reserves from the U.S. Energy Information Administration (EIA) today (22 Jan) to reaffirm API crude reserves, while Market Consensus estimates U.S. crude will drop 2.5 million barrels last week (ending 15 Jan). 

AWS expects short-term volatility from this issue, but AWS believes prices will have a limited downside from expectations for USD1.9tn stimulus package.

 

The U.S. Department of Labor reported the number of applicants for first-time jobless benefits stood at 900,000 in the past week. (Ended 16 Jan), although down from the previous week of about 26,000 but the figure is still higher than the 665,000 cases which is the highest level made during the years 2007-2009, at that time the Great Recession. 

While the U.S. Department of Commerce revealed the housing start-up report in Dec rose 5.8% to 1.67mn units, higher than the Market Consensus estimate of 1.56mn units, and up 1.55mn from Nov.

 

Core Investment

1) Global Play (Trading within 1 month) – PTT, PTTEP, TOP, PTTGC and SCC

2) Green energy stocks (Trading within 3-6 months) – GPSC, EGCO, GULF, BGRIM, BPP, BCPG, EA and ACE

3) Expectations for the vaccine and increased stimulus measures (Trading for 3-6 months) – BBL, KKP, BEM, CPF, TU, M, OSP, CPALL, HMPRO, CRC and CHG

4) Stocks which expected that the performance in 4Q20 will outstand (1-2 months) – SAWAD, GULF, SPALI, ORI, WHA and STA

5) Dividend Play (Middle-term trading 6-12 months) – SC, LH, QH, KKP, TISCO, RATCH, DIF, INTUCH, EASTW and TTW

6) Long term accumulative stocks (DCA) (Long-term trading over 1 year) – AOT, BEM, ADVANC, WHA, LH, CPALL, CPF, BDMS, HMPRO, BBL and KTB