AWS Expects Thai Stock Market to Remain Vulnerable amid Severe Covid-19 Situation

Asia Wealth Securities (AWS) expected the SET this week (31 May to 4 June) to move within the range of 1,550-1,610 points. AWS believed the stock market remains vulnerable to internal factors, especially the severe COVID-19 situation which the number of infections remains between 4.5-4.8 thousand and 58 deaths in total, despite the hope of increased vaccine imports and vaccination operations in June but AWS believed the high number of infected remains a pressing factor in the short term.

In particular, energy stocks still received a negative sentiment from uncertainty ahead of the OPEC+ meeting (starting 1 June), where supply management will be discussed and the U.S. inflation (Core PCE) increased more than expected. This has led to the need to monitor the Fed’s stance on easing monetary policy after the start of a pullback signal (M1) through a reverse repo (bond selling high), although the Fed insists on QE measures, it will pressure overall investment at the beginning of the week.

To sum up, investment Strategy, AWS continued to recommend selective focus on investing in stocks based on the recommended Core Investment portfolio, with a portfolio of 50%.

 

Core Investment

1) Increased confidence in the economy from alternative vaccines (Trading 1 month) BDMS, CHG, BCH, MINT, ERW, AOT, AAV, CPALL, CPN, CRC, BJC, AU and M

2) Thai Baht depreciation (Trading 1 month) CPF, TU, KCE and HANA

3) Stocks expected good performance in 2Q21 (Trading 1 2 months) BCH, CHG, HMPRO, GPSC, BPP, PTTGC, IVL, PTTEP, PTG, SONIC, KWM, ORI, SPALI, KKP, KBANK and MTC

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