AWS Recommends Laggard Stocks amid Prolonged Risks on Covid-19 and Political Protest

Asia Wealth Securities (AWS) expected the SET Index today to move in a range of 1,535-1,560 points. The risk remains on domestic political factors and the COVID-19 situation.

 

AWS recommended gradually keeping stocks with laggard prices and chose ADVANC, PLANB, SPRC, IRPC, PTT, STEC, CK, and CRC. Stocks with expected 3Q21 earnings growth, we choose ASIAN, HANA, KCE, III and JWD. For Defensive stocks, AWS chose GPSC, BCPG, BPP, BGRIM and GULF.

The securities company estimated the market upside is limited after recovering 1.5% this week, near our weekly resistance range of 1,560 points, responding to the positive feedback on progress in procuring more mRNA vaccines and expecting further stimulus measures according to the opinion of the Governor of the Bank of Thailand, proposed that the government borrow an additional Bt1tn to use fiscal measures to stimulate the economy.

 

The US Federal Energy Information Administration (EIA) reported a 3.2 million barrel drop in the U.S. crude oil reserves last week (Ending 13 Aug), more than Market Consensus expected a decrease of 3.1 million barrels. While crude reserves at Cushing, Oklahoma, the delivery point for the U.S. crude futures, fell 1 million barrels, gasoline inventories rose 700,000 barrels (expected to drop 2.3 million barrels), while refined reserves fell 2.7 million barrels (expecting an increase of 700,000 barrels). We recommend investing in Upstream stocks at laggard prices, choosing PTTEP KTC and PTT.

 

Core Investment

1) Stocks which expected the earnings in 3Q21 will continue growth (Trading 1 month) GPSC, BCPF, GULF, TU, ASIAN, BCH, BDMS, CHG, HANA, KCE and NER.

2) Stocks benefit from export (Trading 3 6 months) APURE, SONIC, JWD, WICE, III and NYT.

3) Stocks with high dividend (Trading more than 6 months) KKP, TCAP, TASCO, PSH, TISCO, SPCG, SC, WHAUP, CTW, ORI, RATCH, TVO, TTW and SPALI.

4) Long term accumulative stocks (DCA) (Long term trading over 1 year) AOT, BEM, ADVANC, WHA, LH, CPALL, CPF, BDMS, HMPRO, KBANK and KKP.