Stocks in Asia Trade Higher, Analyst Expects SET to Extend the Gain with Limited Upside

Stocks in Asia traded higher on Friday, following the overnight gain in Wall Street from better-than-expected jobless claims.

 

As of 9:32 local time in Thailand, Nikkei rose 0.28%, SSEC increased 0.26%, HSI advanced 0.42%, ASX 200 hiked 0.40% and Kospi gained 0.63%.

Yesterday, SET Index closed at 1,571.91 points, increased 22.69 points or 1.46% with a trading value of 91.3 billion baht.

The U.S. initial claims for unemployment benefits fell sharply last week, dropping below 500,000 for the first time since the Covid-19 outbreak. The claim reported at 498,000, dropping nearly 100,000 from the week before and beat Dow Jones’ estimation of 527,000.

 

Asia Wealth Securities (AWS) expected the SET to move within the range of 1,540-1,590 points. The SET has a chance to go on, but factors to limit recovery. SET resumed support from (1) domestic vaccination progress (2) increased vaccine imports and private cooperation in the provision of vaccines (3) The Cabinet approves remedial measures to help those affected by COVID-19 in an amount of Bt230bn and (4) a positive sentiment from the gradual announcement of the good operating results, increase the weight of the 2021 earnings forecast revision.

Positive international factors from (1) good economic figures, in particular, the U.S. first-time unemployment benefit declining and (2) the BoE revised GDP increases in 2021, the risk remains in the COVID-19 situation in the region and large economies like India. This includes the BoE signaling a reduction in the QE limit, although the total limit of the bond purchase scheme is maintained. It is also a factor that makes the SET still have a chance of volatility.

Investment overview, AWS also focused on the Core Investment stocks that the security company recommended. For investment strategy, still focus on short-term speculative play, maintaining the equity in the portfolio at 60%.

 

Core Investment

1) For foreigners to hold a property in the country (Short-term trading 2 weeks) – NOBLE, ORI and SC

2) Stocks which benefit from the COVID-19 situation (Short-term trading 2 weeks) – BCH, BDMS, COM7, TQM, III, STA and STGT

3) Global Play (Trading within 1-2 weeks) – PTTGC PTTEP TOP SPRC CPF KCE HANA and SAT

4) Stocks which obtained benefit from EV CAR Thailand 2035 (Short-term trading 1-2 months) – BPP, GPSC, BCPG, EA, NEX, CHO and KCE

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