Asia Wealth Securities (AWS) released an analysis for the trading session on January 6, 2021 indicating the essential events in the stock market as follows:
AWS expected the SET to move in a range of 1,476-1,515 points, believing that the stock market will return to support by confidence in the COVID-19 situation after the progress of the vaccine, the positive factor from Fund Flow is a limiting factor for downside in the market this time.
The market will also receive positive factors from the recovery of crude oil prices after OPEC+ resolution continued to maintain supply levels. As the recovery in crude oil demand remains limited by global lock-down measures, It is positive for energy stocks.
For investment strategy, AWS returned to the weight of Global Play stocks, especially those with only positive factors, for example, the upstream and refinery stocks, expected strong 4Q20 earnings stocks and the green energy segment based on AWS’ core investment.
Last night, OPEC+ resolved to maintain production at 7.2mn bpd until the end of February, while Saudi Arabia will cut output by another 1.0mn bpd. As a result, Saudi Arabia will have a capacity of 8.125mn bpd (from 1 Feb to the end of Mar 2021) which the OPEC + conference allowed Russia and Kazakhstan to increase its total oil output by 75,000 bpd in Feb-Mar 2021, as well as the crude oil price situation was also driven by the situation is tense in the Middle East after Iran seizing a South Korean chemical tanker outside Oman’s waters. Iran also plans to increase uranium mineralization to a purity of 20%, the level before Iran’s 2015 nuclear deal.
As for the development of the pandemic outbreak in Thailand, the Thai cabinet meeting yesterday acknowledged the additional COVID-19 vaccine in case of urgency which the Prime Minister has approved an additional 35.0 million doses of the vaccine for Thai to inject at least 50% of the total population. In total, there will be 63.0 million doses of the vaccine by 2021 on target. From this point, AWS had a positive outlook on the overall investment today.
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