The Thai stock market opened higher on Tuesday in response to optimism on the FDA granting full approval for Pfizer/BioNTech Covid-19 vaccine.
As of 10:02 local time in Thailand on August 24, 2021, SET Index rose 12.57 points or 0.79% to 1,594.64 points with a trading value over 10 billion baht.
Last night, the U.S. Food and Drug Administration (FDA) on Monday granted full approval to the Pfizer/BioNTech COVID-19 vaccine for people aged 16 and older.
Asia Wealth Securities (AWS) expected the SET Index today to move in the range of 1,565-1590 points with positive sentiment based on;
(1) The expectation of a lockdown relief in early Oct and ready to offer safe reopening measures, including offering bubble and seal measures. This is positive for stocks in the reopening sector, AWS chose AOT, AAV, ERW, OR, PLANB, PTG and CPALL
(2) Additional measures from the Bank of Thailand to help debtors which is positive for banking stocks (Overweight). AWS chose KBANK as top picks.
(3) Crude oil price recovery, positive for oil play stocks, AWS chose PTTEP, PTT, IRPC, SPRC and PTTGC
(4) Stocks that benefit from Kratom, positive for the extraction plant, beverages and supplements. AWS chose KWM, ICHI, DOD, NRF, IP and RBF.
For investment strategy, AWS maintained 50% of our portfolio weight by investing in the reopening sector and only focused on short-term speculation from the perspective of the COVID-19 situation in the country where there is still uncertainty while investing in large stocks with unique positive factors. AWS viewed it as being more secure from the Valuation at Laggard. This week, follow the U.S. Federal Reserve’s annual meeting (Jackson Hole Symposium) titled Monetary Policy Framework Review on 26-28 Aug and Thailand Focus on 25-27 Aug.
1) Laggard Play (Trading 1 month) – ADVANC, PLANB, SPRC, IRPC, PTT, STEC, CK and CRC
2) Export Play (Trading 1 month ) – HANA, KCE and APURE.
3) Earnings Play (Trading 1-3 months) – GPSC, BCPF, GULF, TU, ASIAN, SONIC, BCH, CHG, and NER.
4) Dividend Play (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