Asia Wealth Securities (AWS) released an analysis for the trading session on February 5, 2021 indicating the essential events in the stock market as follows:
Today’s investment overview – AWS expected the SET today (5 Feb) to move in the range of 1,460-1,505 points. AWS expected the SET to continue moving in the sideway. The SET is still lacking positive factors to support recovery after trying to test at 1,500 points 2 times in a week.
AWS viewed concerns that the Fed will ease QE measures earlier than expected as a negative sentiment to Thai and regional stock markets, while foreign investors maintain a 10-day net sell position of Bt20bn, while the baht’s value started to stabilize at Bt30 per USD.
However, the recovery of crude oil prices is still a positive factor for energy stocks (AWS choosed PTT, PTTEP and PTTGC as the top picks). These factors limit the downside of the market.
AWS introduced to take profit on stocks that are at full value or exceeding fundamental value, focus on unique positive stocks, banking and energy stocks, and AWS Core Investment, especially expected strong 4Q20 results stocks.
BoE maintains QE interest and credit limit – The Bank of England (BoE) retains its policy rate at 0.10% as the Market Consensus expects, plus the purchase limit for bonds following quantitative easing (QE) measures at GBP895.0bn (USD1.2tn) per month to reduce the impact from the COVID-19 outbreak.
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