Asia Wealth Securities (AWS) released an analysis for the trading session on October 6, 2020, indicating the essential events in the stock market as follows:
The overall investment today – AWS expects the SET today (6 Oct) to recover in a side-way to side-way up from positive overseas factors from both of the progress of the U.S. leader’s illness and the progress in issuing new economic stimulus measures of the U.S. to reduce the impact of COVID-19, the amount is approximately USD2.2tn, including the recovery of crude oil prices, this makes energy stocks return attractive investment (Recommend only speculation, choose PTT, PTTEP, PTTGC and TOP), while the additional stimulus measures of Thailand for the last 3 months of 2020 still need to follow the NSC meeting (7 Oct).
As a result, AWS expected the weekly SET Index movement (5-9 Oct) at 1,211-1,260 points. AWS investment strategy remains the same, focusing on holding more than 50% of cash and stocks in Defensive Stock (Dividend Stock) and DCA stocks based on AWS Investment Theme.
The Ministry of Commerce reported a contraction in CPI in September 2020 – The Ministry of Commerce reported a contraction of 0.7% in September, a smaller contraction than the market expected to contract 4.5%-5.0% so the CPI in the 9M20 range contracted 0.99% (average Core CPI in the 9M20 range was 0.32%).
AWS estimates that the CPI was low which will weigh the possibility of the Bank of Thailand to keep low interest rates for stimulating the economy. AWS has a positive view for stocks in the food, beverage and commercial sectors, choosing CPALL, COM7, CBG and OSP.
Technical View – Today, AWS expects the SET Index to move between 1,230-1,255 with the recommended stocks are AEONTS, ASIAN, NER, SAPPE and CBG.
1) Stocks (Short-term Trading within 1 month) – BAM, BDMS, BEM, CPALL, GPSC, MTC and WHA
2) Benefit from a successful vaccine development and opening countries to receive tourists measure (Short term trading 1-3 months) – AOT, AAV, BA, ERW, M, CENTEL, MINT, WHA and AMATA
3) Benefit according to the season (Short term trading 1-2 months) – BGRIM, CKP and GPSC
4) 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
5) Dividend Play (Middle term investing 6-12 months) – KKP, TISCO, QH, LH, ORI, NOBLE, DIF, INTUCH, HANA, EASTW, TTW, EGCO and RATCH
6) Long-term cumulative shares (DCA) (Investing more than 1 year) – ADVANC, AOT, BDMS, BEM, CPALL, DIF and PTT