Daily Strategy for Investors on January 9, 2020

Asia Wealth Securities (AWS) has made an analysis for the trading session on January 9, 2020, pointing out some of the must-know events in the equity market as follows:

 

Investment Ideas:

1) The crude oil price, gold price, US, and Asian markets closed in the positive territory this morning.

2) Investors see the tension in the Middle East as an unwinding signal after President Donald Trump has not yet specified the use of military operations in response to Iran that fired missiles at a US military base in Iraq, but he might use economic sanctions instead.

3) House of representative meeting to consider the budget for 2020 in the amount of Bt3.2tn on 8-9 Jan 2020 may be extended to 10 Jan 2020 due to a council failure.

4) Mid-year budget expenditures for 2020 in the amount of Bt518bn passed consideration of agenda 2.

5) Senate meeting to consider the annual expenditure budget in 2020, Agenda 3, on 27 Jan 2020.

6) Today, SET index is expected to be in the range of 1,560-1,580 points with recommended stocks HANA, KBANK, INTUCH.

 

Stock & Comment
HANA – TP ฿39.00/share
KBANK – TP ฿182 .00/share
INTUCH – TP ฿74.75/share

 

Pick of the day: HANA (BUY; AWS TP Bt39.00)

In 2020, World Semiconductor Trade Statistic (WSTS) predicts that worldwide semiconductor sales will grow by 5.9%YoY, led by smartphone products that expect to grow by 12.5% YoY from facial recognition technology that will be supporting factor for the company, including the introduction of 5G networks in various countries will help stimulate the smartphone market due to changing consumer behavior to support 5G network usage.

AWS expects HANA performance to improve from (1) a trade war that is likely to end well after Phase One of trade negotiations went well will help support the production base in China. (2)The semiconductor market gradually improved, especially in the smartphone market. In addition, Thai baht has started to depreciate slightly, but it needs to be monitored.

In this regard, AWS recommends BUY with a target price of Bt39.00, based on 5-year PER of the industrial group Weekly view: breakout price is above the downtrend line, but waiting for the movement in 2 days for a chance to close above Bt34.00.

Daily view: the price rises to the line of the 20-day EMA. It is expected to rise to test the next resistance at Bt35.50, but if going up to Bt35.50, then the trading value is less. Recommend short-term speculation and sell. Set a cutoff point at Bt32.75. (Resistance: 36.50,35.50; Support: 33.25)