Daily Strategy for Investors on January 27, 2021

Asia Wealth Securities (AWS) released an analysis for the trading session on January 27, 2021 indicating the essential events in the stock market as follows:

 

Investment Overview 

AWS expected the SET today to move in the range of 1,496-1,528 points. In the short-term, the market has returned to the positive response to the Cabinet’s approval of the measure about tax assistance to remedy the effects of COVID-19.

In addition, the view is more positive as the IMF adjusts its outlook on the overall economy in 2020-2022, but remains vulnerable to the COVID-19 situation as a factor limiting recovery. We believe that trading in the Thai stock market continues to fluctuate sideways to sideways up, as well as following the FOMC meeting and U.S. economic stimulus limits.

AWS also recommended selling and taking profit at full value or exceeding the fundamental value. While new investment round, for short-term investors, focuses on speculation in stocks with positive supporting factors such as stocks that benefit from loosening the lockdown measure and stocks that benefit from government measures including BEM, BCH, M, CRC, OSP, CPALL, SCB, KBANK and BBL, or recommended stocks based on AWS’ Core Investment.

 

Yesterday, the Thai cabinet meeting approved 3 stimulus measures from (1) 3-month extension for tax submission for Personal income for the year 2020 (ending 30 June 2021) (2) Reduce the land tax rate and buildings of all types in the year 2021 reduced 90% to 10% and (3) Reduction of transfer fees to purchase real estate for homes that are less than Bt3.0mn at 0.01% (formerly 2%) and lower mortgage costs at 0.01% (originally 1%).

 

Meanwhile, the situation of COVID-19 still makes investors concerned about the possibility of an extended lockdown in countries facing the COVID-19 with mutations outbreak. This is consistent with the IMF’s view that the global economy is still facing uncertainty amid the new epidemic and mutations of the COVID-19 virus in the latest economic report. Including recently, crude oil prices are still volatile which WTI crude for March delivery closed at USD52.61 a barrel, down 16 cents (-0.3%), but the U.S. crude supply remains to be monitored according to the U.S. Government’s Energy Information Administration (EIA) report today (27 Jan), the Market Consensus estimates the remaining the U.S. crude oil reserves fell 1.7mn barrels last week. (Ended 22 Jan), the latest API report reported that the U.S. crude oil inventories fell 5.27mn barrels.

 

Core Investment

1) Global Play (Trading within 1 month) – PTT, PTTEP, TOP, PTTGC and SCC

2) Green energy stocks (Trading within 3-6 months) – GPSC, EGCO, GULF, BGRIM, BPP, BCPG, EA and ACE

3) Expectations for the vaccine and increased stimulus measures (Trading for 3-6 months) – BBL, KKP, BEM, CPF, TU, M, OSP, CPALL, HMPRO, CRC and CHG

4) Stocks which expected that the performance in 4Q20 will outstand (1-2 months) – SAWAD, GULF, SPALI, ORI, WHA and STA

5) Dividend Play (Middle-term trading 6-12 months) – SC, LH, QH, KKP, TISCO, RATCH, DIF, INTUCH, EASTW and TTW

6) Long term accumulative stocks (DCA) (Long-term trading over 1 year) – AOT, BEM, ADVANC, WHA, LH, CPALL, CPF, BDMS, HMPRO, BBL and KTB