AWS Expects Thai Market to Remain Volatile amid Covid Situation and IMF’s Negative View

Asia Wealth Securities expected SET Index to remain volatile amid Covid-19 situation and IMF's negative view.

Asia Wealth Securities (AWS) expected the SET today to move in a range of 1,530-1,555 points. The SET remains volatile due to the COVID-19 situation in the country and the negative IMF views on the economies of Asia and the 5 Asian economies, including Thailand, which are still risk factors that need to be monitored. There are still positive factors from the latest FOMC meeting results. The Fed kept the policy rate unchanged at 0.00-0.25% and continued to buy at least USD120bn per month of quantitative easing (QE) bonds as expected. However, the IMF’s WEO report maintains its World GDP growth forecast of 6% and increases the growth of large economies such as the U.S., China, India and Europe. This gives us a positive view on the Oil Play stocks. We choose PTTEP and PTTGC as the top picks. While our main investment strategy, we continue to focus on stocks that benefit from the weak baht and export stocks, we choose ASIAN, TU, HANA, KCE, SAT, AH, PACO, APURE, SONIC and NYT as well as stocks benefiting from increased WFH, we choose ADVANC, YGG and AS.


Core Investment

1) Hospitals stocks (Trading within 1 month) TM, SMD, BCH, BDMS and CHG.

2) WFH stocks (Trading within 1 month) ADVANC, TRUE, TPAC, SCGP, JAS, ITEL, INSET, NETBAY, YGG and AS.

3) Stocks which obtained benefit from Thai baht depreciation (Trading within 1-3 months) ASIAN, TU, HANA, KCE, SAT, AH, PACO, MEGA, NER, EPG, CBG and SMPC.

4) Stocks obtained benefit from export (Trading 1-3 months) APURE, SONIC, JWD, WICE and NYT.

5) Stocks with high dividend (Trading more than 6 months) TCAP, TASCO, PSH, TISCO, SPCG, SC, WHAUP, CTW, ORI, RATCH, TVO, TTW and SPALI.

6) Long term accumulative stocks (DCA) (Long term trading over 1 year) AOT, BEM, ADVANC, WHA, LH, CPALL, CPF, BDMS, HMPRO, KBANK and KKP.

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