Asia Wealth Securities (AWS) released an analysis for the trading session on January 4, 2021, indicating the essential events in the stock market as follows:
The overall investment today – AWS expects the SET this week (4-8 Jan 2021) to move in a range of 1,412-1,488 points. AWS believes that the SET Index will continue to fluctuate from growing concern over the country’s COVID-19 situation and the global epidemic.
Including an increased risk of virus mutations while politics in the U.S. needs to follow the second round of Georgia election (5 Jan), aid measures in the U.S. that began to be uncertain after the majority leader in the U.S. Senate hindered consideration of raising aid to USD2,000 (originally USD600), and concerns about the political situation during the transfer of power to the new government may not be smooth which may affect the security of the U.S.
The economic numbers are interesting today (4 Jan), following the manufacturing PMI index reports in major countries including Japan, China, Britain, Germany and the U.S.
For investment strategy, AWS also recommends selling and taking profit of stocks at full value or exceed the fundamental value while investing in the new round, recommending to invest in a speculative manner such as STGT, STA, TQM, JMT and IIG, the power generating segment (based on AWS Core Investment), as well as the laggard stocks like ADVANC, TVO and BAM.
The situation of COVID-19 in the country is still worrisome, still not locked down, but increasing control measures. AWS looked at it as the main factor affecting the investment sentiment today – The COVID-19 situation in the country (3 Jan), the CCSA has reported 315 new cases of COVID-19 infection, 294 cases of domestic infection and migrant workers. (Proactive screening) totaling 20 cases and the quarantine facility (Quarantine), who came from abroad, totaling 21.
While yesterday afternoon Samut Sakhon Public Health Office announced a total of 541 people infected in the area, causing the Commissioner to issue measures to implement the highest control areas in Bangkok and 27 other provinces.
1) Global Play (Trading within 1 month) – PTT, SCC, PTTEP, TOP, PTTGC, IVL, CPF and TU
2) Stocks which expected that the performance in 4Q20 will outstand (1-2 months)- SAWAD, GULF, SPALI, ORI, WHA and STA
3) Green energy stocks (Trading within 3-6 months)- GPSC, EGCO, GULD, BGRIm, BPP, BCPG, EA and ACE
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