Daily Strategy for Investors on September 10, 2019

Asia Wealth Securities (AWS) has made an analysis for the trading session on September 10, 2019, pointing out some of the must-know events in the equity market as follows:

 

Thai Stock Market This Week

1) It is expected ECB may ease monetary policy or launch economic stimulus measures on 12 September.

2) Bank of China announced to cut RRR by 0.50%, effective on 16 September. The Fed agreed to cut the policy interest rate by 0.25% to 2.00% at the meeting on 19 September 2019.

3) It is expected the MPC meeting of BOT maintain the policy interest rate at 1.50% at the meeting on 25 September.

4) Crude oil price is likely to be stable or increase.

5) The cabinet meeting today awaits to see the export stimulate measures by the Ministry of Commerce and the guarantee of rubber sales of the Minister of Commerce and the Ministry of Agriculture and Cooperatives.

 

Investment Ideas:

1) Focusing on big stocks benefitting from the industrial outlook and the company’s unique capabilities such as OSP, WHAUP, AOT, BAFS and PTT.

2) Oil price is expected to improve this week as a result of lower supply mainly benefitting to PTTEP and PTT shares.

3) Interest rate is in the downtrend benefitting NOBLE, ANAN, ORI, AP and SPALI. AWS picks ORI as outstanding stock.

4) Today’s index range is expected to be 1,658 -1,680 points. Recommended stocks are PTT, KKP, and CKP

 

Stock & Comment

PTT – TP ฿50.00/share

KKP – TP ฿80.00/share due to an oversold after XD. AWS expects the 3Q19 profit to improve from investment advisory business.

CKP – TP ฿7.60/share due to the impact from drought has been resolved, waiting for revenue and profit recognition from the Xayaburi Dam on November 2019.

 

Pick of the day: PTT (BUY; AWS TP Bt50.00)

PTT is interesting for investment based on the share price at Laggard and the 3Q19 earnings recovery trend, AWS expects the 3Q19 net profit to recover from the 2Q19 net profit previously reported at Bt 26 bn from (1) Core business still strong both the gas business and gas separation plant business (2) Exploration and production business for petroleum sales volume increased and (3) Refining business, that has benefited from the recovering GRM. AWS still has a positive view on 2H19’s normalized profit, with 1H19 net profit accounting for 43% of our forecast for 2019 at 1.06bn, down 5.7% YoY.

PTT is likely to have a downtrend due to the Weekly & Monthly Sell Signal. PTT has resumed in the short term due to the daily buy signal, indicating short-term recovery. When considering PTT, the target is 47.50 baht. The short-term stop-loss point is 42.50 baht. (Resistance: 45.25 , 45.50 , 46.00 ; Support: 44.75 , 44.50 , 44.00)