Asia Wealth Securities (AWS) released an analysis for the trading session on September 14, 2020, indicating the essential events in the stock market as follows:
Investment Overview Today – AWS expects the SET Index today (14 Sep) to recover from the buying back force in the form of short-term speculative investment after last week, the SET Index dropped 32 points (-2.44%). However, for the whole week (14-18 Sep), AWS expects the SET to move in a side-way down manner. AWS estimates this week’s movement of the SET stood at 1,258-1,316 points, especially towards the end of the week with negative factors both at home and abroad.
The negative domestic factor comes from political problems and COVID-19 cases both in the country (Thai League footballers) and Japanese returning from the country while the foreign negative factor comes from the conflict between the U.S. and China and uncertainty over Brexit, including the temporary suspension of Phase III COVID-19 vaccine trial (9 Sep) after the sample group had side effects.
This week, the focus is on several major central bank meetings, including the FOMC meeting (15-16 Sep) which is expected to have more detail about “Average inflation target” includes monitoring of economic stimulus measures at the BoJ, BoE and Eurogroup Meetings on economic stimulus plans.
For investment strategy, AWS weighs in the Dividend Play and DCA stocks with a drop in stock prices for long-term investment. In the short term, the stock market remains high volatility.
1) Benefit from a successful vaccine development in the near future (Short term trading 1 month) – AOT, AAV, BA, ERW, M, CENTEL and MINT
2) Benefit according to the season (Short term trading 1-2 months) – BGRIM, CKP and GPSC
3) Benefit from the stimulus package (Short term trading 1-3 months) – CPALL, CRC, HMPRO, BJC, OSP, CBG, MTC, CK, BEM, SEAFCO, PYLON, TASCO, COM7 and WHA
4) Dividend Play (Middle term investing 6-12 months) – KKP, TISCO, QH, LH, ORI, NOBLE, DIF, INTUCH, HANA, EASTW, TTW, EGCO and RATCH
5) Long-term cumulative shares (DCA) (Investing more than 1 year) – ADVANC, AOT, BDMS, BEM, CPALL, DIF and PTT