Asia Wealth Securities (AWS) released an analysis for the trading session on September 16, 2020, indicating the essential events in the stock market as follows:
The overall investment today – AWS expects the SET Index today (16 Sep) to continue volatility. Issues to watch are at the Federal Reserve’s Monetary Policy Conference (Fed), scheduled to be announced tonight (16 Sep). AWS expects the Fed to maintain its policy rate and expect to see more details about “average inflation target”. AWS believes that the SET will continue to move in a side-way down manner. AWS weighs the unique positive stocks and Theme Investment stocks in the Dividend Play and DCA group.
Crude oil prices rose after it is reported that Hurricane Sally is expected to affect the performance of the petroleum exploration and production business, including the refining business in the Gulf of Mexico because the U.S. National Hurricane Center (NHC) expects Hurricane Sally is likely to become a level 3 hurricane (all 5 levels).
The latest petroleum production data from the Bureau of Safety and Environmental Enforcement (BSEE) estimates that oil production is currently suspended at 26.87% and natural gas of 28.03% in the Gulf of Mexico. While some refineries began to announce the closure of operations.
AWS only looks at the short-term effects due to reduced capacity that was offset by high petroleum reserves. Therefore, AWS recommends only speculation by selecting PTT, PTTEP and PTTGC as our top picks from the above issue.
The World Trade Organization or the World Trade Organization (WTO) announced that the U.S. breaks international trade laws in raising tariffs on goods from China and it is intended to discourage free trade. However, the WTO has not imposed sanctions on the U.S., and gives the U.S. opportunity to provide evidence for denying the allegation within 60 days.
Technical View – Today, AWS expects the SET Index to move between 1,279 – 1,295 points. (Support at 1,283 1,279 and 1,271 points and resistance at 1,290 1,295 and 1,303 points). The recommended stocks are TU, MEGA, ERW, MINT and SAWAD.
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