Asia Wealth Securities (AWS) released an analysis for the trading session on February 11, 2021 indicating the essential events in the stock market as follows:
Today’s investment overview – AWS expected the SET to move in a range of 1,500-1,530 points. AWS expected the SET index to continue volatility in the sideway to sideway up, with short-term investment sentiment support, according to the Fed Chairman that will keep interest rates low and the continued strong crude price is a factor to support stocks in the energy sector, including the first day trading of OR today.
However, investment strategies, AWS continued to focus on stocks with a specific positive factor with a fundamental upside and AWS recommended stocks in the recommended Core Investment.
Jerome Powell delivered a speech at the Economic Association of New York yesterday (10 Feb) keynote to the U.S. stock market relief concerns as the Fed wants to see employment numbers and the inflation rate recovered sustainably before decide to reduce the amount of the asset purchase project worth USD120bn per month, along with reiterating that the Fed will continue to hold interest rates at low levels to stimulate the economy and jobs.
However, Market Consensus does not generate a positive surprise for the market as many have anticipated the speech to some extent.
WTI crude oil contract for March delivery closed at USD58.68 a barrel, up 32 cents (+0.6%), partly due to the report on crude oil reserves which EIA by the US Government’s Energy Information Administration (EIA) reported a 6.6 mn barrel drop in the U.S. crude oil reserves last week. (Ended 5 Feb), which is 2.7mn more than the Market Consensus expected.
The information is in line with reports from the American Petroleum Institute (API), a group of the U.S. oil industry which previously reported that the U.S. crude reserves were down 3.5mn barrels. Also, the EIA report also said crude reserves at Kuching, Oklahoma, where the U.S. crude futures were down 700,000 barrels, while the gasoline reserves increased by 4.3mn barrels and refined oil reserves (Including heating oil and diesel oil) decreased by 1.7mn barrels which crude oil prices continued to increase.
Previously, it was driven by the expectation that the U.S. government will issue a new round of stimulus shortly after Democrats succeed in pushing Congress to approve the USD1.9tn of a stimulus package of President Joe Biden.
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