Asia Wealth Securities (AWS) released an analysis for the trading session on February 3, 2021 indicating the essential events in the stock market as follows:
Today’s investment overview – AWS expected the SET today (3 Feb) to move in the range of 1,466-1,498 points, the stock market continuing to fluctuate in a sideway up from negative domestic factors on the report of 777 new infections number in Samut Sakhon (2 Feb), 759 proactive inspections, which could be a factor in today’s trading volatility.
However, foreign positive factors still weigh and limit the downside of the market in the short-term to test at 1,500 points again.
Today, follow the BoT’s MPC meeting and the BoE meeting. However, AWS still has the same investment strategy by introducing to take profit on stocks that are at full value or exceeding fundamental value, focusing on stocks with unique positive factors in AWS Core Investment, especially those that are expected to have a strong 4Q20 performance.
Follow the BoT’s MPC meeting and the BoE meeting today (3 Feb). AWS expected the MPC to maintain the policy rate at 0.5% (AWS expected the BoT to maintain the 2021 policy rate at 0.5%). AWS expected a gradual recovery in the overall economy, reflected in consumption and private investment in December grew 2.7%YoY and 4.5%YoY, while the economic stimulus policy through the previous fiscal policy was 1.4% of GDP, increasing enough to offset the impact to some extent.
As a result, AWS did not expect to see any economic stimulus measures from BoT at this meeting or the best case may be to consider specific measures of assistance like the past, making us look positive for the banking sector.
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 4Q20 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