Daily Strategy: AWS Expects SET Index to Remain Volatile on Monetary Policy Change Fears

AWS recommends short-term speculative investments as Thai market will continue to fluctuate due to concerns about changes in monetary policy, recommending Global, Oil and Re-Openings Plays

Asian stock markets retreated on Wednesday, September 15, following the Dow Jones Industrial Average’s roughly 300-point loss, as investors fear that the US government may hike corporate income taxes, affecting the earnings of listed companies. Analysts recommend keeping an eye on China’s August economic reports.

Thailand’s SET Index today opened at 1,627.20 points, increasing 3.36 points or 0.21%, with a trading value of 3,623 million baht.

Asia Wealth Securities (AWS) expects the SET today to move in a range of 1,615-1,635 points. SET was down from a unique negative factor, especially the SEC and the SET preparing to adjust the criteria for low liquidity stocks. It is also one of the selection criteria for the SET50 index, the SET100 index and the SETHD index which have a negative impact on low-liquidity stocks such as DELTA, MAKRO and INTUCH, impacting the SET by 9.66 points (the SET closed down 9.92 points yesterday).  

AWS’s recommended stocks include Global Play (global economic recovery): BANPU, TU, IVL, SCC, KCE and PSL, Oil Play (Crude oil continues to rise due to the Hurricane season in the U.S.): PTTEP, SPRC, TOP and PTT and stocks in the Re-Opening group (the measures to relieve the lockdown and travel stimulus measure): AOT, BAFS, BEM, BAM, PTG, HMPRO, and ORI which responded individual positive factor. 

For investment strategy, AWS also recommends short-term speculative investments. While the market will continue to fluctuate due to concerns about changes in monetary policy. AWS still has to follow the Fed’s FOMC meeting (21-22 Sep) and the BoT’s MPC meeting (29  Sep). AWS also weighs stocks in Earnings play based on Core Investment portfolio to reduce the volatility of the SET that is expected to occur in the near term.

Core Investment:

1.Re-opening (trading within 1 month) – AOT, BAFS, BEM, BAM PTG and ORI.

2.Earnings Play (expect 3Q21 continue to grow) (Trading 1-3 months) – CKP, GPSC, BCPG, KCE, TU and ASIAN.

3.Dividend Play (Trading more than 6 months) – KKP, TCAP, TASCO, PSH, TISCO, SPCG, SC, WHAUP, CTW, ORI, RATCH, TVO, TTW and SPALI.

4.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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