Asia Wealth Securities (AWS) released an analysis for the trading session on May 25, 2020, indicating the essential events in the stock market as follows:
Investment Overview Today – This week, the SET Index has a chance of fluctuation, especially the risks from foreign factors, namely the growing conflicts between the U.S. and China. However, the stock market still has a positive factor from the expectation of phase 3 easing lockdown measures as a positive effect on broad economic activities after reporting the good number of people infected.
Monitoring phase 3 easing lockdown measures to support the positive sentiment on investment – The factors in the country that are worth following are the details of phase 3 easing lockdown measures to increase the country’s economic activities after good controlling the COVID-19 situation in the country.
The escalating conflict between the U.S. and China is a risk investment factor – The risks rise from (1) China: China National People’s Congress (NPC) proposed a new law stating that Hong Kong must take immediate action to enforce national security under the Hong Kong Constitution, which is the fundamental law of Hong Kong, and (2) the U.S.: the Senate has a consensus passing the “Holding Foreign Companies Accountable Act”, affecting Chinese companies listed in the U.S. stock market to may be withdrawn from the market. In addition, the U.S. Department of Commerce has blacklisted 33 Chinese companies and institutions from human rights violations and are a threat to U.S. security.
Technical View – AWS estimates the SET frame this week at 1,280 – 1,330 points, and expect the SET index to move today in a range of 1,290 – 1,325 points (with support at 1,301 1,290 and 1,276 points and resistance at 1,314, 1,325 and 1,339 points). The recommended stocks today are CBG, SUPER, STEC, ERW, and MAJOR. (Please follow details in Technical Express)
1)Stocks which obtain the benefit from relaxing lockdown phase – AWC, CRC, CPN, BTS, BEM, HMPRO, GLOBAL, DOHOME, M, AU, and COM7
2)Recovery of crude oil price – PTTEP, PTT, TOP, BCP, SPRC, and PTTGC
3)Stocks that benefit from entering rainy season – BCPG, BGRIM, CKP, GPSC, and EASTW
4)Stocks that benefit from government measure – ADVANC, BTS, BEM, CPF, CPALL, BJC, CRC, CPN, PLANB, HMPRO, OSP, and CBG
5)Long-term cumulative shares (DCA) – ADVANC, AOT, BDMS, BEM, and DIF
6)SSFx target stocks – PTT, PTTEP, BJC, CPALL, AOT, GULF, EGCO, INTUCH, ADVANC, BAM, and BDMS