Stocks in Asia Fluctuate in the Morning Session as Covid-19 Concerns Weigh on Sentiment

Stocks in Asia Fluctuate in the Morning Session as Covid-19 Concerns Weigh on Sentiment.

Stocks in Asia fluctuated in the morning session on Friday, April 23, 2021, as investors continued to monitor the coronavirus development in India and other countries in Asia as well.


As of 9:21 local time in Thailand, Nikkei slipped 0.67%, SSEC rose 0.31%, HSI gained 0.91%, ASX 200 fell 0.13% and Kospi increased 0.05%.

Yesterday, SET Index closed at 1,568.21 points, decreased 11.80 points or 0.75% with a trading value of 93.3 billion baht.


The latest report from India, there were 314,835 more infected daily and 2,104 deaths yesterday (21 Apr), while India will not have a lockdown but measures will be issued in different zones of the country to control the outbreak only, including the fact that Thailand still found infected people in the country stays at a consistently high level as the vaccination operation continues to be delayed causing the COVID-19 situation so it still worrisome and a negative factor that pressures the overall investment.


Asia Wealth Securities (AWS) expected the SET today to move within the range of 1,550-1,585 points, which will continue to suffer from the worsening COVID-19 situation. While an increase in crude oil price is still not motivating enough for us to increase investment weight, making us continue to maintain holding cash of more than 50% to reduce market volatility. While investing still focuses on stocks with unique positive factors according to the Core Investment.


Yesterday, the European Central Bank (ECB) resolved to maintain policy rate (Refinance rate) at 0%, maintain the deposit rate of commercial banks deposited with the ECB at -0.50% and maintain the loan rate at 0.25%. In addition, the ECB has the resolution to maintain the purchase limit of PEPP bonds at EUR1.85tn, EUR10bn per month average (project ending in Mar 2022).

However, the previous ECB meeting (Mar 2021) will increase the bond purchase limit in 2Q21 to keep interest rates low. While the Eurozone economy is still affected by the COVID-19 outbreak.


Core Investment

1) Stocks which benefit from waiver for foreign property holding in the country (Short-term trading 2 weeks) NOBLE, ORI, LH and SC

2) Stocks which benefit from the COVID-19 situation (Short-term trading 2 weeks) – BCH, BDMS, COM7, TQM, III, STA and STGT

3) Stocks which obtained benefit from EV CAR Thailand 2035 (Trading within 1-2 months) – BPP, GPSC, BCPG, EA, NEX, CHO and KCE

4) Dividend Play (Middle-term trading 6-12 months) – SC, LH, QH, KKP, TISCO, RATCH, DIF, INTUCH, EASTW and TTW

5) Long term accumulative stocks (DCA) (Long-term trading over 1 year) – AOT, BEM, ADVANC, WHA, LH, CPALL, CPF, BDMS, HMPRO, BBL and KTB