Stocks in Asia Fall amid Concerns of Fed’s QE Decision, AWS Expects SET to Move Sideways

Stocks in Asia traded mostly lower on Friday as the market continued to weigh on concerns over the Fed’s direction on QE amid rising inflation rate.

 

As of 9:50 local time in Thailand on May 21, 2021, Nikkei rose 0.44%, SSEC fell 0.54%, HSI slipped 0.42%, ASX 200 dipped 0.08% and Kospi dropped 0.18%.

 

Asia Wealth Securities (AWS) expected SET to continue moving in the sideways in a range of 1,540-1,565 points, with the market still losing positive factors supporting investment after the announcement of operating results.

Also, the market continued to be under pressure from the domestic COVID-19 situation and the opinions of some of the Fed’s directors about inflation risk which will increase weight on the QE cut and increase interest rate which will be faster than expected. However, investors still need to follow up on the next FOMC meeting. Therefore, AWS continued to focus on the recommended Core Investment portfolio, with a portfolio of 50%.

 

EU advises 27 member states to relax entry regulations to be able to receive fully vaccinated travelers from countries where the COVID-19 outbreak occurs no more violent, in addition to the 7 countries which currently permitted with under the new rules that expats entering the EU must provide proof of EU approved COVID-19 vaccination which consists of Pfizer-Bio-Tech, Moderna AstraZeneca and Johnson & Johnson.

Also, the plan includes an ‘emergency braking system‘ that can be used immediately in case of wanting to discourage tourists from a country with a new virus outbreak which the measures to relax controls on international travel by the EU Expected to be in the upcoming summer season.

 

WTI crude oil for Jun delivery fell USD1.31 (-2.1%) to a third consecutive day of decline due to the worrying about Iran’s resumption of exports Crude oil after negotiating sanctions on Iran between the U.S. and Iran has made progress.

This will allow Iran to resume oil exports in exchange for Iran’s compliance with the nuclear deal, including the COVID-19 situation in regions that are still violent, especially in India Including expanding some lockdown measures in Taiwan due to the number of people infected with the virus greatly increased, including Taiwan has announced an upgrade of the coronavirus alert which rising to level 3, effective from 20-28 May so that it a negative factor in the recovery of crude oil demand.

 

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, 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