Asia Wealth Securities (AWS) released an analysis for the trading session on January 7, 2021 indicating the essential events in the stock market as follows:
The overall investment today – AWS expects the SET today to move in a range of 1,473-1,512 points. The SET Index continues to fluctuate in a sideway up manner after rising but failing to pass significant resistance at 1,510 points again.
Yesterday, there was still a strong sell-off in the electricity businesses; GULF, GPSC and EA (total impact on the SET of approximately 3.24 points) after a significant increase in the first 2 trading days of 2021, including the reduction of the share price of some companies that have unique negative factors; DELTA and IVL (the total impact on the SET is approximately 10.57 points), although energy stocks will increase in line with the recovery of crude oil prices.
While the direction of the baht began to weaken for 2 consecutive days, causing yesterday (6 Jan) to start foreign’s selling.
For investment strategy, AWS also recommends selling and taking profit at full value or exceed the fundamental value while investing in the new round, AWS recommends investing in a speculative manner by focusing on stocks with specific positive factors, for example, energy stocks (Upstream and Refineries), expected strong 4Q20 earnings stocks and Green Energy expected to buyback after having profit taking yesterday (6 Jan).
The U.S. Government’s Energy Information Administration (EIA) reported an 8mn barrels drop in the U.S. crude oil reserves last week. (Ending 1 Jan), which was more than the Market Consensus expected drop of just 1.2mn barrels and was the fourth straight week of decline., while Gasoline reserves rose 4.5 mn barrels (expected to increase 1.4mn barrels) and refined oil. (Heating oil and diesel oil) increased by 6.4mn barrels (expected to increase 2.2mn barrels).
While the American Petroleum Institute (API), a group of the U.S. oil industry reported that the U.S. crude oil reserves fell 1.7mn barrels in the past week. (Ended on 1 Jan) is another supporting factor, apart from yesterday (6 Jan), as well as the oil prices also received positive factors from the Saudi Arabia which voluntarily cut production capacity by 1.0mn bpd to 8.125mn bpd (starting 1 Feb until ending Mar).
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