Asia Wealth Securities (AWS) released an analysis for the trading session on January 12, 2021 indicating the essential events in the stock market as follows:
Today’s investment overview – AWS expects the SET today (12 Jan) to move in the range 1,513-1,566 points. The stock market is likely to continue volatility after yesterday, the market was concerned about the market’s measures to control stocks with the low free float as well as the direction of the baht to depreciate from pressure from the U.S. dollar appreciate due to positive feedback on the U.S. Treasury yield rebound and the expectation of the U.S. economic stimulus package to reduce the impact of COVID-19.
As a result, yesterday AWS started to see a slight selling pressure from foreign investors.
However, AWS looks at it as a short-term pressure factor for the SET Index, growing concerns created profit-taking after the stock market increased more than 28.6% (from the end of October 2020).
For investment strategy, AWS also recommends selling and taking profit at full value or exceed the fundamental value while new investment round, recommend investing in positive stocks based on AWS Core Investment.
The U.S. 10-year Treasury yields continue to rise which the latest figure was 1.155%, while the 30-year government bond yield rose to 1.893%, and the dollar continued to appreciate from the positive response to the U.S. economic stimulus package (expected announcement 14 Jan) to reduce the impact of COVID-19.
It is expected to consist of unemployment insurance and the moratorium on rent which the measure is expected to be worth several trillions of dollars after Democrats win the election in Georgia so it makes the party dominate in the White House, Senate and House of Representatives which will facilitate the release of new economic stimulus measures before Biden was inaugurated as president on 20 Jan.
1) Global Play (Trading within 1 month) PTT, PTTEP, TOP, PTTGC and SCC
2) Green energy stocks (Trading within 3-6 months) GPSC, EGCO, GULF, BGRIM, BPP, BCPG, EA and ACE
3) Expectations for the vaccine and increased stimulus measures (Trading for 3-6 months) BBL, KKP, BEM, CPF, TU, M, OSP,
CPALL, HMPRO, CRC and CHG
4) Stocks which expected that the performance in 4QQ20 will outstand ( 1-2 months) SAWAD, GULF, SPALI, ORI, WHA and STA
5) Dividend Play (Middle term trading 6-12 months) SC, LH, QH, KKP, TISCO, RATCH, DIF, INTUCH, EASTW and TTW
6) Long term accumulative stocks (DCA) (Long term trading over 1 year) AOT, BEM, ADVANC, WHA, LH, CPALL, CPF, BDMS,
HMPRO, BBL and KTB