AWS Expects SET to Move Sideways Up as Vaccine Rollout Beats Covid-19 Infection Numbers

Asia Wealth Securities (AWS) expected the SET today will continue to move in a sideways to sideways up in a range of 1,575-1,605 points, despite internal risks as the number of infections in the country continues to increase.

The expectations for vaccination action which began to gradually inject into the general public since 7 June is a positive sentiment for the overall investment is a factor supporting the Core Investment (stocks that benefit from increased economic confidence from alternative vaccines). Follow the OPEC+ meeting today (1 June), especially on supply issues.

For investment strategy, AWS continued to recommend Selective to focus on investing in stocks based on recommended Core Investment, with a portfolio of 60%.

 

AWS advised to follow OPEC+ (Ministerial Meeting) today (1 Jun) with an interesting point in the production plan which was originally OPEC+ that will increase production by 350,000 bpd in June and an additional 441,000 bpd in July, but may have to consider the possibility of a return to Iranian crude exports, if negotiations on a nuclear deal between the U.S. and Iran can be made this week.

However, AWS still believed that crude oil prices will remain high, with WTI moving in a range of USD60-65 a barrel from the increasing demand for crude oil from seasonality factors (Driving Season in the U.S.) and the recovery of the overall economy from the gradual return to open countries of large economies after the progress has been made after the vaccination operation.

In the latest report, OPEC + JTC Group expects crude oil demand in 2021 to be 96.5 million bpd, up 6 million bpd (+6.6% YoY). JTC expected that in 2021, the oil market will be deficit caused by excess demand so it reduces concerns about the overall supply that may increase from the plans to increase production by OPEC+, including Iran.

 

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) – LH, QH, ORI, SPALI, ADVANC, KKP, TISCO, STA. STGT, TMT, TVO and STI.

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