Daily Strategy for Investors on February 2, 2021

Asia Wealth Securities (AWS) released an analysis for the trading session on February 2, 2021 indicating the essential events in the stock market as follows: 

 

Investment Ideas:

Today’s investment overview – AWS expected the SET today (2 Feb) to move in a sideway upward movement, with the movement forecast at 1,462-1,498 points. 

For the short-term, follow manufacturing and service PMI in January in many countries around the world between 2-3 Fe, which will begin to reflect the impact of the global lockdown measures. 

Overall investment still needs to be cautious, especially stocks in groups that have limited valuation, including expectations for the vaccine that is still uncertain and the uncertainty of the U.S. economic stimulus package after several Republican senators have called on President Joe Biden to drop the limit from USD1.9tn to be able to pass approval from the House of Representatives and the U.S. Senate although the relaxed monetary policy (QE) of central banks around the world will be a positive effect for investing in risky assets as a whole. 

As a consequence, AWS kept the same investment strategy by introducing taking profit from stocks that are at full value or exceeding fundamental value, focusing on stocks with unique positive factors in AWS Core Investment, especially those that are expected to have a strong 4Q20 performance.

 

WTI crude for March delivery closed at USD53.55 per barrel, up USD1.35 (+2.6%). Crude oil prices rose on positive factors about Saudi Arabia’s production cut of 1 million barrels per day (Feb-Mar 2021). AWS looked positive for energy stocks, recommending PTTEP (Buy, TP Bt118), PTT (Buy, TP Bt45) and PTTGC (Buy, TP Bt71).

 

The Thai Chamber of Commerce proposes to the Ministry of Finance delay LTV temporarily. AWS saw it as difficult, recommending “Buy” ORI, LH and SPALI. 

Issue: The Thai Chamber of Commerce submits a letter to propose the Ministry of Finance to temporarily delay the use of LTV – revive the housing project with down payment and reduce the burden down payment Bt50,000 for stimulating the property, while the Minister of Finance pointed out for 2 weeks, saw the details of the approach (Prachachat) 

Comment:  AWS viewed LTV deferral as a difficult issue which depends on the BoT’s consideration, but for other measures, there is a possibility that the government sector will issue additional assistance measures to consumers and entrepreneurs after the previous land tax reduction and reduce the transfer and mortgage fees was extended another 1 year, which measures earlier covering only 20-30% of the consumer group.

Investment strategy: Focus on investing in their companies with recovering results and have a dividend rate of 4-7%, choosing ORI (Buy TP Bt8.80), LH (Buy TP Bt9.50) and SPALI (Buy TP Bt24.00).

 

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