Asia Wealth Securities (AWS) released an analysis for the trading session on April 2, 2020, indicating the essential events in the stock market as follows:
1) Dow Jones and Commodity yesterday – The Dow stock market dropped by 973.65 points (-4.44%), WTI crude oil prices fell by 17 cents (-0.8%) and gold price dropped by USD5.2 (-0.33%).
Investment overview: Today, AWS still sees the SET Index having a chance to fluctuate in the downtrend with downside limit. AWS still weighs the increased risk of the COVID-19 situation after the US leader showed a negative signal in the next 2 weeks. However, the better-than-expected US manufacturing PMI report in March supported the investment in stocks that were slightly affected by COVID-19 (Theme Investment), while the crude oil prices recovered, AWS views it as a short-term speculation opportunity in stocks in the energy sector only.
2) The situation of COVID-19 in the US is a negative factor for investment overview after the US leader showed a negative signal to the situation in the next 2 weeks, there may be many deaths of US people.
3) The US economic data contributing to the AWS theme investment after the US ISM reported that the March manufacturing PMI was 44.9, down by MoM, but better than expected. However, businesses with continuous growth are food and beverage groups. Although such positive factors will not help support the US market, AWS looks at it as a positive factor and support the stock investment in the theme investment (COVID-19 slightly affected group), especially TU, including GFPT and CPF.
4) This morning, crude oil prices recovered after obtained the news of the attack on Iran of the US – Positive factors due to (1) Russian leaders revealed that negotiations with the OPEC (excluding Saudi Arabia) to maintain stability, which primarily, Russia will be no capacity increase at this time and (2) concerns over the situation in the Middle East between the US and Iran.
5) Economic statistics for today (2 Apr), the number of people applying for weekly unemployment benefits for the first time in the US, although it was expected to decrease from the previous week, it was still at a high level of 3 million people.
Today, AWS expects the SET to be with the range 1,088-1,114 (Support at 1,097 1,088 and 1,070 // Resistance at 1,114 1,123 and 1,141) which the recommended stocks are TU, CPF, KCE, ORI and SPRC (Follow in the Technical Express analysis).
1) Slightly affected stocks from COVID-19, AWS chooses TU (TP Bt18.40) GFPT (TP Bt12.00) CPF (TP Bt33.00) TFG*(TP Bt5.35) BJC*(TP Bt48.00) CPALL (TP Bt85.00) and TQM*(TP Bt69.00).
2) Down side limiting and strong cash flow, AWS chooses BGRIM (TP Bt59.00) EGCO (TP Bt358.00) GULF*(TP Bt164.00) GPSC (TP Bt82.00) and RATCH*(TP Bt72.25).
3) Stocks which obtain the benefit from work from home measure, AWS chooses ADVANC (TP Bt250.00) INTUCH*(TP Bt76.75) DTAC*(TP Bt48.50) TRUE*(TP Bt4.50) DIF*(TP Bt17.20) and COM7*(TP Bt28.50).
4) Stocks for long-term investment (DCA), AWS chooses ADVANC (TP Bt250.00) AOT (TP Bt79.00) BDMS (TP Bt27.50) BEM (TP Bt12.50) and DIF*(TP Bt17.00).
5) Defensive & high dividend, AWS chooses KKP (Div.Yld. 15.9%) QH (Div.Yld. 9.3%) DIF*(Div.Yld 8.2%) TISCO (Div.Yld. 8.7%) INTUCH*(Div.Yld. 6.2%) TTW*(Div.Yld. 4.8%) and RATCH*(Div.Yld. 4.2%) *IAA Consensus