Daily Strategy for Investors on August 28, 2019

Asia Wealth Securities (AWS) has made an analysis for the trading session on August 28, 2019, pointing out some of the must-know events in the equity market as follows:

1) Treasury bond market has an inverted yield curve which short term 2-year bond yield at 1.549% more than long term 10-year bond yield at 1.513% that indicates an economic recession.

2) Trade negotiations between the US and China unpredictable after the statement of Chinese Foreign Ministry Spokesperson conflict with Trump president who gave hope to the market earlier.

3) Thailand Focus event held on 28-30 Aug. 2019 that expect the direction of the Thai economy has improved.

4) BDI closed up at 2,213 points, increase 45 points (+2.08%) ,recommend speculate “PSL”.

5) Today Strategy: focusing on 1. EEC Theme with outstanding stocks of WHA, WHAUP, GPSC. 2. Benefiting stocks from the weak crude oil prices and petrochemical spread, especially TASCO and EPG. 3. The advantage of the downtrend interest like MTC and SAWAD. 4. Stocks that receive benefits from economic stimulation and the tendency of increasing minimum wages such as CPALL, CBG, OSP, and OISHI. 5. A stock that may well pay an extra dividend like NOBLE. Last but not least, PSL, which may be traded according to BDI speculation.

6) Today index trading range is expected to trade around  1,604-1,630 points with recommending stocks of BEM,OSP,PSL, and NOBLE

 

Stock & Comment

BEM – AWS TP Bt12.50

OSP – IAA Consensus Bt37.00-40.00

PSL – AWS TP Bt13.00 supply was decreased from IMO2020 measure

NOBLE – AWS TP Bt26.50 adjust the new target price from Bt24.30 to Bt26.50, AWS expects the firm will pay a high dividend at Bt2.43/share, or dividend yield 10.4%.

 

Pick of the day: BEM (AWS TP Bt12.50)

AWS is still following the government’s consideration after the majority committee agreed to renew the expressway concession contract. Before the original contract expires in 1Q20 in exchange for all dispute settlement between BEM and EXAT. Currently, only waiting for the final consideration of the Minister of Transport AWS sees this as a positive sentiment on investment BEM. AWS recommends BUY.

BEM is very strong in the uptrend from the Daily, Weekly, & Monthly buy signal. When considering BEM, the main target is at 11.60 baht. The short-term stop-loss point for BEM is 10.80 baht. (Resistance: 11.20, 11.30, 11.50; Support: 11.00, 10.90, 10.70)