AWS Recommends 5 Investment Themes as Domestic Covid Cases Surpass 1 Million

Asia Wealth Securities expected the SET Index today to move in a range of 1,530-1,560 points. Negative sentiment based on the expectation that Thailand will have COVID-19 cases today (20 Aug) in the country, the cumulative total is 1 million (accumulated since 2020), the average number of infections in August (1-19 Aug) at 20,662 cases per day, including the risk of domestic political factors.

 

As for the overseas factor, Goldman Sachs downgrades forecast the U.S. gross domestic product (GDP) growth in 3Q21 was 5.5%, down from the previous estimate of 9%, as a result of the COVID-19 pandemic of Delta species that had a bigger-than-expected impact on economic growth and inflation because it affects consumer spending and the manufacturing sector, including giving a view on inflation in the U.S. will be higher than expected in the remaining of the year. However, Goldman Sachs raised its 4Q21 GDP forecast to 6.5% (from 5.5%), stating that concerns about the COVID-19 pandemic will be resolved, including the recovery of the service sector. In addition, Goldman Sachs raised its GDP forecast for the period 1Q22 to 3Q22.

 

For the trading session in the Thai stock market, AWS recommended gradually collecting laggard play stocks, earnings play (3Q21 expected to continue growing), export play, and defensive stock, while maintaining 50% shares in the portfolio.

 

Core Investment

1) Laggard Play (Trading 1 ADVANC, PLANB, SPRC, IRPC, PTT, STEC, CK and CRC

2) Export Play (Trading 1 month ) HANA, KCE and APURE.

3) Earnings Play (Trading 1-3 months GPSC, BCPF, GULF, TU, ASIAN, SONIC, BCH, CHG, and NER.

4) Dividend Play (Trading more than 6 months) KKP, TCAP, TASCO, PSH, TISCO, SPCG, SC, WHAUP, CTW, ORI, RATCH, TVO, TTW and SPALI.

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