Asia Wealth Securities (AWS) released an analysis for the trading session on February 9, 2021 indicating the essential events in the stock market as follows:
Today’s investment overview – AWS expected the SET today (9 Feb) to move in the range of 1,492-1,530 points. In the short-term, the stock market will receive a boost from positive overseas factors; both the proposed Fast Track stimulus measures in vaccination around the world and the increase in crude oil price are positive factors for stocks in the energy sector.
Meanwhile, tomorrow (10 Feb) will still have to track the global consumer price index (CPI) report, especially the U.S. and China, which will serve as a tool for inflation. If there is a hike, the short-term will return to a positive factor for the banking sector from the expectation to see a faster rate hike than expected.
While the negative factors from the new cluster, there were 87 infected cases and spread in 5 provinces. AWS looked at it as negative and had little impact on the overall investment.
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 investing in stocks with only positive factors, for example, energy and bank stocks and AWS recommended Core Investment.
Crude oil prices have positive feedback on three factors which are (1) The progress of the U.S. government which will release a new round of fast-track stimulus measures, raising expectations of economic recovery faster than expected.
(2) The immunization in the U.S. with progress currently vaccinating against COVID-19 more than 32.8mn U.S. people.
(3) Previously positive factors that the crude oil market eased the pressure from oversupply after Saudi Arabia cut output by 1.0mn bpd to 8.125mn bpd (from 1 Feb to the end of Mar), while reports indicate that OPEC+ continues to cut production capacity in line with the deal.
Also, investors continue to monitor the weekly of the U.S. crude oil reserves which the U.S. Energy Information Administration (EIA) will release the information tomorrow (10 Feb) at 10:30 p.m. on Thai time.
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