AWS Eyes Energy Sector as Laggard Stocks for Investment Opportunity

Asia Wealth Securities viewed the energy sector as laggard stock over excess demand in the market after the output increase.

Asia Wealth Securities (AWS) expected the SET Index today to move within a range of 1,515-1,540 points. The stock market still lacks positive factors to support investment after the end of the earnings announcement period which has been a factor supporting the market in the past.

There is a negative sentiment from the NESDB’s downward revision of the 2021 GDP forecast, which increases the risk of a downgrading of the 2021 earnings forecast.

AWS also chose stocks in the Defensive group, stocks that are expected to continue to perform well, including stocks in the global-play group with laggard share price after the major economies started to open the country. AWS weighed the stock in the portfolio of 50%.


Shares in the Energy sector are laggard which are suitable for gradual investment. AWS recommended selective.

According to an analyst meeting, yesterday (16 Aug) both TOP and IRPC are concerned about the oil business, Petrochemical and Refining Overall, crude oil demand for the remainder of 2021 continues to increase by 4-5 mn barrels per day (Estimated from IEA EIA and OPEC) compared to 1H21 despite OPEC increasing production but the oil market is still in a state of excess demand. While the refining business is still a negative factor from the higher refining costs from Crude Premium, resulting in a slight recovery in product spreads,  while the petrochemical business, product spread in 2H21 weakened HoH due to new production capacity.

However, AWS believed that share prices in the energy and petrochemical sectors have dropped an average of 12% over the past three months. AWS believed that it partly reflected the risks from such negative factors, and viewed it as an investment opportunity, choosing IRPC, BCP, PTTGC and PTTEP.


Core Investment

1) WFH stocks (Trading 1 month) – ADVANC, TRUE, YGG and AS.

2) Stocks that expected the earnings in 3Q21 will continue growth (Trading 1 month)- GPSC, BCPF, GULF, TU, ASIAN, BCH, BDMS, CHG, HANA, KCE and NER.

3) Stocks benefit from export (Trading 3-6 months) – APURE, SONIC, JWD, WICE, III and NYT.

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

5) 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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