Daily Strategy for Investors on August 7, 2019

Asia Wealth Securities (AWS) has made an analysis for the trading session on August 7, 2019, pointing out some of the must-know events in the equity market as follows:

1) China made a positive move by stabilizing the Yuan.  The value of Yuan/USD remains stable at 7 yuan per USD. AWS has to wait and see the clear attitude of both China and the US.

2) Performance of listed companies in the export sector is still poor and not so bright. Recommend to avoid the investment, especially the companies that receive revenues in yuan such as TKN, BEAUTY, and DDD.

3) There will be the MPC meeting of BOT today. AWS expects BOT to cut policy interest rate by 0.25% from 1.75% to slow down the appreciation of the baht against major currencies especially the Chinese yuan.

4) Monitor the direction of crude oil price.

5) Investment strategy: If it rebounds to 1,700 points, AWS recommends reducing the port to 50% to wait for the timing to buy

6) Today’s index range is expected to be 1,665-1,683 points. Recommend stocks are AOT (TP ฿84.00), KKP (TP ฿80.00), THANI (TP ฿8.30) and ADVANC (TP ฿225.0).

 

Pick of the day: Recommend “BUY” AOT at a target price of ฿84.00/share.

Air transport statistics in 4Q6219QTD (Jul-Sep) has a good recovery signal. The latest data that AWS received from AOT found the number of foreign passengers (including six major airports of AOT) in July and the first three days of August, increased by 3.6%YoY and 8.3%YoY, respectively. In addition, total passengers in July and the first three days of August increased by 1.4%YoY and 3.3%YoY, respectively. AWS sees better air transport statistics as a good sign for a strong tourism outlook.

AOT, although the main trend is upward trend due to Monthly Buy Signal, the company still has weakness in both short and medium-term due to both Daily & Weekly Sell Signal. If AOT is able to keep the market closed for at least Bt69.25, the main target is Bt71.25. If AOT is able to close the market above Bt71.25, the first target of the new high will be at Bt77.75. For AOT, at Bt69.00. (Resistance: 69.50, 70.00, 70.25; Support: 69.00, 68.75, 68.25)