Daily Strategy for Investors on January 5, 2021

Asia Wealth Securities (AWS) released an analysis for the trading session on January 5, 2021 indicating the essential events in the stock market as follows: 

 

Investment Ideas:

The overall investment today – AWS expects the SET today (5 Jan) to move in a range of 1,443-1,479 points. AWS expects the SET Index to remain volatile in the sideway. Yesterday, the SET Index responded positively to the faster-than-expected arrival of vaccines, including measures to control the epidemic in the country that is not very strict. This causes decreased concerns about the impact on the overall economy. 

In addition, the previous supporting factor from Fund Flow and continued foreign investors’ trading pressure is a limited downside factor for the market, but in the short-term there is a picture of the number of COVID-19 infections in the country that are pressuring the recovery. 

Today, it remains to follow the OPEC+ meeting and the results of the second round of the Senate election of Georgia. 

For investment strategy, AWS also recommends selling and taking profit 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.

 

Yesterday (4 Jan), Bangkok extended the dining time at the restaurant until 9 p.m. to reduce the impact on people and entrepreneurs in which the time 9 p.m. – 6 a.m. is the distribution of take-away food. 

The Thai Ministry of Public Health reported that (1) Thailand will buy another 2 million doses from Sinovac from China, and will be delivered in February – April 2021 (2) Antiviral vaccine production of 26 million doses of COVID-19 constitute an advance purchase contract for the vaccine with Astrazeneca. 

It is currently in the process of transferring the production process to Siam Bioscience Co., Ltd. and is expected to gradually be delivered in May 2021 and (3) negotiations with the COVAX Facility, including negotiations with other vaccine manufacturers, including Pfizer Moderna, a Chinese company, including the possibility to purchase additional items from Astrazeneca.

 

OPEC+ meeting yesterday (4 Jan) still conflicted about the oil production policy which most of OPEC members still want to extend the oil production period. While the producers of non-OPEC are Russia and Kazakhstan want to increase production capacity 500,000 barrels per day in February. 

While the OPEC Secretariat’s view of crude oil prices still believes that oil prices in 6M21 will remain volatile and there is a risk of downgrading from measures to control the spread of COVID-19 in many countries, as well as concerns about the mutation of COVID-19. 

However, the extended meeting must still be followed which will be a meeting today (5 Jan) an additional day.

 

Core Investment

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