Daily Strategy for Investors on January 26, 2021

Asia Wealth Securities (AWS) released an analysis for the trading session on January 26, 2021 indicating the essential events in the stock market as follows: 

 

Investment Ideas:

Today’s investment overview – AWS expects the SET today (26 Jan) to move in the range of 1,487-1,519 points. The SET Index will remain volatile, especially from the COVID-19 situation in the country with a growing number of infected from the proactive examination of the government sector, including the uncertainty in the amount of the U.S. economic stimulus measures. 

AWS maintains its investment strategy as before. AWS also recommends selling and taking profit at full value or exceeding the fundamental value. While new investment rounds, for short-term investors, focus on speculation in stocks recommended by short-term technical factors or recommended stocks according to AWS Core Investment.

 

The U.S. Bond Yield decreased after a possible that the U.S. leader will reduce the limit of economic stimulus measures – there is a possibility that President Joe Biden will have to lower the limit on the stimulus package to be approved by Congress which many members of Congress (Both Republicans and Democrats) question the necessity of issuing a USD1.9tn stimulus package of the U.S. leaders by the stance of members of the U.S. Congress adds to the weight of the possibility that the U.S. leader may reduce the amount of the stimulus to be approved by the House of Representatives and the Senate. 

While the latest money market movement, 10-year the U.S. Treasury yields plunged to 1.04% and 30-year government bond yields plunged to 1.8% as capital inflows into the bond market.

 

AWS advised to follow the Fed’s FOMC monetary policy meeting (26-27 Jan) which Market Consensus estimates the Fed will maintain the same rate at 0.00% -0.25%, but the stance of the Fed remains to be monitored which the Fed will continue to buy bonds in line with the quantitative easing (QE) at the same amount of USD120.0bn per month or not amidst the seriousness of the COVID-19 outbreak in the U.S.

 

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