Asia Wealth Securities (AWS) released an analysis for the trading session on December 17, 2020, indicating the essential events in the stock market as follows:
The overall investment today – AWS expects the SET today (17 Dec) to remain volatile in a sideway manner, with a lack of new positive factors supporting investment despite a positive sentiment from capital inflows to the region, including the SET Index and the Fed’s view that is more positive on the overall economy for the remainder of 2020 through 2021, but within the frame that the Market Consensus expects, including a resolution to maintain short-term interest rates at 0.00-0.25% allows AWS to maintain the weight of investment is only speculation.
For investment strategy, AWS remains cautious about short-term fluctuations, recommending to sell some shares or full value while new investment rounds, recommend only speculation.
WTI crude oil has risen for the third consecutive day, boosted by a report by the U.S. Energy Information Administration (EIA) that U.S. crude reserves fell 3.1 million barrels last week (ended 11 Dec) in contrast with the Market Consensus expected to rise by 1.9 million barrels.
The EIA report also indicated crude reserves in Kuching, Oklahoma, where the U.S. crude oil futures were delivered, rising 200,000 barrels. Gasoline reserves increased by 1 million barrels (expected increase of 2.6 million barrels) and refined oil reserves (Heating oil and diesel) increased by 200,000 barrels (expected increase of 1.1 million barrels).
AWS suggests only speculation on energy stocks after the upside of the stock price limit.
1) Global Play (Trading within 1 month) – PTT, SCC, PTTEP, TOP, PTTGC, IVL, CPF and TU
2) Stocks which obtained the benefit from the nearest successful of COVID-19 vaccine (Trading within 1 month) – AOT, AAV, BA, ERW, M, CRC, CENTEL, MINT, WHA and AMATA
3) Stocks which expected that will have the outstanding performance in 4Q20 (Invest 1-2 months) – SAWAD, GULF, SPALI, ORI, WHA and STA
4) Dividend Play (Middle-term trading 6-12 months) – SC, LH, QH, KKP, TISCO, RATCH, DIF, INTUCH, EASTW and TTW
5) Long term accumulative stocks (DCA) (Long-term trading over 1 year) – AOT, BEM, ADVANC, WHA, LH, CPALL, CPF, BDMS, HMPRO, BBL and KTB