AWS Expects Thai Market to Move Sideways Down over Covid-19 Pressure

Asia Wealth Securities (AWS) expected the SET this week (9-13 August) to move within the range of 1,490-1,560 points as the Thai stock market is still volatile this week in a sideway down manner. The same risk remains a pressure factor for the SET both the COVID-19 situation at home and abroad, including risks from changes in U.S. monetary policy.

Follow the U.S. Inflation Report (CPI) in July on 11 August, Market Consensus is expected to rise 4.9%YoY and 0.5%MoM, including the Fed’s annual meeting on 26-28 August. Meanwhile, Thai MPC meeting in September weighs the possibility that the Bank of Thailand will cut the policy rate. This is a factor supporting the depreciation of the baht and increasing fund flow out.

For investment strategy, AWS recommended holding more than 50% cash for short to medium term investors (Invest no more than 3 months). AWS stated that it is still focusing on core investments it recommended by choosing stocks that are expected to have good results in 3Q21, namely TM, SMD, WINMED, BDMS, CHG, BCH, GPSC, BCPG, TU, ASIAN, HANA, KCE, NER, SONIC, III and JWD. As a long-term investment, we recommend Dividend play stocks (AWS’ Core Investment chooses stocks with a dividend yield of not less than 5%) and DCA stocks.

 

Core Investment

1) Stocks benefit from COVID-19 situation (Trading 1-3 months) – TM, SMD, WINMED, BCH, BDMS and CHG.
2) WFH stocks (Trading 1-3 months) – ITEL, INSET and AS.
3) Stocks benefit from Thai baht depreciation (Trading 1-3 months) – ASIAN, TU, HANA, KCE, PACO, AH, SAT, MEGA, NER and EPG.
4) Stocks benefit from export (Trading 3-6 months) – APURE, SONIC, JWD, WICE, III and NYT.
5) Stocks benefit from National Energy Plan (Trading 6 months) – ACE, GPSC, BCPG, BPP, BGRIM, GULF and SPCG.
6) Stocks with high dividend (Trading more than 6 months) – KKP, TCAP, TASCO, PSH, TISCO, SPCG, SC, WHAUP, CTW, ORI, RATCH, TVO, TTW and SPALI.
7) Long term accumulative stocks (DCA) (Long-term trading over 1 year) – AOT, BEM, ADVANC, WHA, LH, CPALL, CPF, BDMS, HMPRO, KBANK and KKP.