AWS Expects Energy Sector to Benefit from Rising Oil Prices, Recommending PTTEP-PTTGC

AWS expected the SET today to move within the range of 1,575-1,600 points, while the energy sector would benefit from rising oil prices.

Asia Wealth Securities (AWS) expected the SET today to move within the range of 1,575-1,600 points. Stock market has a chance to recover from the purchase of shares in the energy sector following the increase in crude oil prices and shares in the banking group with expected 2Q21 earnings to grow YoY.

Among securities in the energy and banking sector, AWS chose PTTEP, PTTGC, KBANK and KKP as the top picks, as well as those that benefit from the recovering global economy, including the depreciation of the baht support stocks in the export sector.

However, the recovery still has negative factors from the COVID-19 situation in the country. It is a negative sentiment for the overall investment even though the government has issued quasi-lockdown measures.


OPEC+ meeting postponed to today (2 July) to extend the time to consider additional production plans but WTI crude for August delivery closed at USD75.23 a barrel, up USD1.76 (+2.4%) after reports that Saudi Arabia and Russia have offered OPEC+ to increase production by 400,000 barrels per day (Expected to increase production by 0.5-1.0mn barrels per day) from August to Dec. 2021, although the United Arab Emirates still oppose the proposal in this meeting. It will be a meeting to plan oil production in August, which will consider many factors, including oil demand from the U.S., Europe and China, as well as the tendency of Iran to return to oil exports.


Core Investment

1) Laggard Play (Trading within 1 2 months) ADVANC, CPF, KBANK, BBL, MTC, EGCO, SPALI, LH, WHA, BDMS, BEM and BJC

2) Countdown 120 Days Re Opening (Trading within 3 months) BAM, BA, BEM, BDMS, BJC, BTS, CPALL, ERW, CENTEL, CRC, SPA, HMPRO, WHA. AU and M.

3) Stocks expected good performance in 2Q21 (Trading 1 3 months) BCH, CHG, HMPRO, GPSC, BPP, PTTGC, IVL, PTTEP, PTG , SONIC, KWM, ORI, SPALI, KKP, KBANK and MTC

4) Dividend Play (Middle term trading 6 12 months) LH, QH, ORI, SPALI, ADVANC, KKP, TISCO, STA, STGT, TMT, TVO and STI

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

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