Daily Strategy for Investors on September 3, 2019

Asia Wealth Securities (AWS) has made an analysis for the trading session on September 3, 2019, pointing out some of the must-know events in the equity market as follows:

Thai Stock Market Today:

1) The US stock market closed on Labor Day. The US-China trade war moves forward, concerning the Brexit to remain a big obstacle of the market.

2) BDI hits a new high in six consecutive years, up to 2,442 points which were +64 points or +2.69% from yesterday. The QTD has already revised up by 80%. It benefits PSL and TTA. Our top pick stock is PSL with 45% upside from the target price.

3) Relieve a concern on drought throughout the region. It becomes more positive to CKP.

4) Today, Thai stock market is expected to remain volatile. Some sectors are very good such as electricity. However, it needs to be cautious about selling force. However, if it became weaker, AWS still suggest finding an opportunity to buy such as real estate. It has to invest calmly, buy when the price is weak and sell when the price rebounds as this sector is expected to be benefitted from the fall of interest rate around the world.

5) Wait for short-term and medium-term economic measures which are expected to be announced in the next two weeks by the BOI.

 

Investment Ideas:

1) Shares in electricity sector revise up but it needs to be cautious on selling force. However, it remains in the uptrend.

2) Real Estate benefits from the likelihood of interest rate cut.

3) The speculation of oil price is likely to decline TASCO and TIPCO. The price of plastic pallets weakens EPG.

4) The prolonged US-China trade war has positively affected industrial estate focusing on WHA, WHAUP, AMATA and BGRIM.

5) Prepare to launch positive stimulus measures benefitting CPALL, BJC and OSP.

6) Drought has mitigated benefitting CKP.

7) Freight rate is expected to hit a new high in six years benefitting PSL.

8) Today’s index range is expected to be 1645-1,665 points. Today’s recommended stocks are OSP and PSL.

 

Stock & Comment

ORI – TP ฿40.00/share

PSL – ฿13.00/share from freight rate hits a new high in 6 years.

CKP – ฿7.60/share from drought began alleviative.

 

Pick of the day: OSP Recommend BUY with an IAA Consensus at Bt40.00

OSP is expected to benefit from (1) short-term and medium-term stimulus measures prepared by the government (2) the likelihood of minimum wage increase in the country (3) “M150” currently to occupy the top market share of energy drink with a continued increasing market share, while its 2nd and 3rd competitors have a decline market share (4) the launch of new drinks which is a Niche Market with a success such as sugar-reducing drinks and energy drinks with ginseng that allows to penetrate further to the middle consumer market (5) the successful penetration of international markets in Vietnam and Myanmar despite a failure in Cambodia (6) personal care products well penetrate to the online market. AWS has not yet started an initial coverage OSP shares; therefore, AWS uses IAA Consensus with an average target price of Bt40.00.

OSP remains in the Uptrend, thanks to the Daily and Monthly Buy Signal. OSP is waiting for the occurrence of Weekly Buy signal. If the price pattern could close above Bt37.25 in the weekly market, the price would be resumed the full Uptrend. When considering the OSP’s price, the significant target to be a new high would be Bt41.00 with a short-term stop loss of Bt36.75. (Resistance: 38.75, 39.25, 40.25; Support: 38.00, 37.50, 36.50).