Daily Strategy for Investors on August 26, 2019

Asia Wealth Securities (AWS) has made an analysis for the trading session on August 26, 2019, pointing out some of the must-know events in the equity market as follows:

1) Tighten the port by reducing stock holding and holding cash to 60%.

2) Investors are worried that trade war between the U.S. and China to affect the global economy.

3) The State Council of China announced on Friday that China will impose 5-10% tax on US imports of $ 7.5 billion, effective September 1 and December 15.

4) President Donald Trump immediately responded to China by tweeting, ordering the US companies hurried to withdraw from China and return to produce products in the US.

5) Investors are still disappointed that Fed Chairman Jerome Powell has not sent a signal to the US interest rate direction. In a speech at the Fed’s annual economic meeting in Jackson Hole, Wyoming.

6) FedWatch Tool indicates that investors expect a 100% chance that the Fed will cut interest rates at the policy meeting. Finance on 17-18 September.

7) Forecast Today’s SET Index for the 1620-1 ,650 points. AWS recommends AOT (TP ฿84.00), RATCH (TP ฿72.50) and BEM (TP ฿12.50)

 

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

Positive factors supporting 2 short-term investments from (1) Regional airport plans. There is a list of Krabi airports and Buriram Airport to replace Sakon Nakhon Airport And Chumphon Airport with fewer passengers.

However, such issues must be approved by the Cabinet and (2) Air transport statistics 4Q62QTD (Jul-Sep) has a good recovery signal. The latest data AWS receives from AOT shows that the total number of international passengers from 6 airport’s AOT airports in August (1-17 Aug) has increased by 3.8% YoY is a good signal for the overall picture of tourism that remains strong.

AOT still has a tendency to be in an uptrend due to the occurrence of both daily & monthly buy signal. AOT is still waiting to return to the strength in the medium term by creating a new weekly buy signal. The main uptrend is full. When considering the AOT, the main target is at 74.25 baht. The short-term stop-loss point for the AOT is 70 baht.