Daily Strategy for Investors on February 25, 2020

Asia Wealth Securities (AWS) released an analysis for the trading session on February 25, 2020, indicating the essential events in the stock market as follows:

 

Investment Ideas:

1) Dow Jones dropped 1,031.61 points and WTI crude oil price fell by 3.7%, while gold price was up by 1.7%, reflecting a concern about weaker-than-expected economic due to the fact that many countries have begun to suspend foreign flights and block borders after the report of COVID-19 virus outbreak outside China showed a rapid increase in number of people infected and the deaths.

2) US economy started to be affected after the Goldman Sachs Group released a report to reduce the US GDP in the period 1Q20 to 1.2% (formerly 1.4%).

3) The latest situation of the COVID-19 virus in Thailand; the deputy prime minister and public health minister Anutin Charnvirakul revealed that the National Communicable Disease Committee unanimously resolved that such virus should be announced to be the 14th deadly contagious disease (SARs and MERs are serious contagious no. 12 and 13)

4) Asian stock market dropped sharply, led European and US stock markets. AWS expects today to see the recovery of the Thai stock market but the recovery is still under pressure due to data on the number of people infected in areas outside of China. AWS recommends focusing on investing in Defensive and High Dividend stocks according to AWS’ theme investment.

5) GULF – the share price increased by 1.9% on the day that SET dropped almost 60 points due to responding to the news of the change in the par value from Bt5.0 to Bt1.0 (The effective date has not been determined) which the firm waiting to propose to the annual general meeting of shareholders for the year 2020 on 8 April. Also, the firm announced to pay a dividend at Bt1.30/share (XD on 5 March and Payment on 28 April)

6) HANA – reported the earning of 4Q19 at Bt558mn, up 37%QoQ but down 14%YoY which 36% higher-than-expected, but the total earning for 2019 is still down 24%YoY to Bt1.8bn because of Thai baht appreciation. Also, the firm will announce to pay 2H19 dividend at Bt0.65/share (XD 9 March and payment on 15 May), while 2020, AWS expects that the firm will pay a dividend at Bt1.3/share which equal 2019.

7) Today, interesting financial statements announcement – SPALI, AP, TCAP, BCH and GFPT.

8) Today’s analysis  – Company Update: CPALL // Earning Results: HANA.

9) Today, AWS forecasts the SET to be in range of 1,410 – 1,448 points (with support at 1,423 1,410 and 1,385 points and resistance levels at 1,448 1,461 and 1,486 points).

 

Theme Investment 

1) Accelerate the disbursement of the government budget in 2020. AWS chooses CK (TP Bt22.00), SEAFCO (TP Bt7.30), WHA (TP Bt5.20), and KKP (TP Bt80.00).

2) Government stimulus measure, AWS favours AOT (TP Bt84.00), CPALL (TP Bt94.00), and HMPRO (TP Bt19.00).

3) Global trade has eased and Thai baht depreciates. AWS chooses HANA (TP Bt39.00), TU (TP Bt18.40), and CPF (TP Bt33.00) and

4) Interest rates cut. AWS chooses ORI (TP Bt10.00), SPALI (TP Bt20.00), MTC (TP Bt75.00), KKP (TP Bt80.00), and TISCO (TP Bt112.00).