AWS Expects Dull Trading Session, Recommending Stocks with Unique Positivity

Asia Wealth Securities (AWS) expected the SET today to move within a range of 1,610-1,635 points. The SET has a positive momentum, but trading may not be active, waiting for the results of the European Central Bank (ECB) monetary policy meeting and the release of the U.S. consumer price index (CPI) report today (10 Jun).

Yesterday, the SET increased 13.39 points (+0.83%) from funds flow into the Thai stock market (in Jun, foreign investors accumulated a net buy of Bt7.5bn), as well as positive sentiment from internal factors after an average of 444,488 doses of vaccination per day (7-8 Jun), increasing the likelihood of the government’s target of 100 million doses by 2021 (206 days remaining, average 460,645 doses per day).

Investment for the medium term, AWS continued to recommend a Selective Investment in stocks with unique positives based on the Core Investments are those that benefit from the expected reopening of the economy (Economic confidence is increasing from alternative vaccines) and stocks that expected 2Q21 net profit continues to be good.

 

WTI crude for Jul delivery fell 9 cents (-0.1%), reflecting concerns over higher than expected refined oil reserves but crude oil reserves decreased which the U.S. Energy Information Administration (EIA) reported that gasoline reserves increased by 7mn barrels (expected to increase by 1mn barrels) and diesel reserves (Including heating oil reserves) increased by 4.4mn barrels (expected 400,000 barrels).

However, AWS remained optimistic on crude oil prices from the demand for oil in the U.S. still in the driving season, including an EIA report that the U.S. crude oil reserves fell by 5.2mn barrels per day (expected to drop 1.4mn barrels), while gasoline and diesel reserves increased. Also, the forecast for oil demand in the U.S. in 2021 is increased by 1.5mn barrels per day (previously expected to increase by 1.4mn barrels per day) due to nationwide vaccination operations and economic stimulus measures, including the European announcement of the relaxation of travel restrictions.

It is a factor that stimulates the demand for crude oil which supports Cyclicals and Commodity Play stocks, AWS chose CPF, TU, SAT, TVO, HANA, KCE, PTTEP, PTTGC, III, SONIC and PSL.

 

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