Asia Stocks Trade in Mix Sessions as Fed Announces No Renewal of Covid-19 Break Program

Stocks in Asia mixed on Monday, March 22, 2021, as investors traded cautiously after the Fed announced no renewal of COVID-19 Capital Break program, resulting in a surge in bond yield yet again.

 

As of 9:29 local time in Thailand on Monday, Nikkei dropped 1.85%, SSEC rose 0.84%, HSI increased 0.16%, ASX 200 gained 0.59%, and Kospi fell 0.13%.

Last Friday, Dow Jones fell 0.71%, S&P 500 slipped 0.06% and Nasdaq rose 0.76%.

SET Index closed at 1,563.96 points, decreased 4.86 points or 0.31% last Friday with a trading value of 88.7 billion baht.

 

Asia Wealth Securities (AWS) expected the SET this week (22-26 Mar) to move in the range of 1,518-1,600 points. Negative signs on the overall investment this week come as (1) The Fed announced no renewal of COVID-19 Capital Break program, giving bond yield a high of 1.73%. (2) At a meeting between senior representatives of the U.S. and China over the past holiday. There are negative signs and (3) European vaccination operations are still delayed. In addition, the lockdown measures are still being extended in some countries despite the recovery of crude oil prices from the oil factory attack in Saudi Arabia, but the security company expected the share price to be modestly positive.

For investment strategy, in the short-term, AWS recommended only speculation on stocks with unique positive factors by weighting the cash in the portfolio at a proportion of 50%. AWS were still wary of risk factors that still exist. This will also give the market a chance to fluctuate during the rest of March and April.

 

Core Investment

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

2) Obtained benefit from the decreasing in bond yield (Trading within 3-6 months) – GPSC, EGCO, GULF, BGRIM, BPP, BCPG and ACE

3) Expectations for the vaccine and increased stimulus measures (Trading for 3-6 months) – CPALL, AOT, AAV, ERW, BDMS, CHG, AMATA and WHA.

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

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