Daily Strategy for Investors on July 13, 2020
Daily Strategy for Investors on July 13, 2020
Daily Strategy for Investors on July 13, 2020
13 ก.ค. 2563

Maybank Kim Eng (Maybank) released an analysis for the trading session on July 13, 2020, indicating the essential events in the stock market as follows:
 
Market Summary
1) The SET on Friday fell, hit by increasing concern about the US economy following new virus infected cases continue to accelerate. The SET index closed at 1,350.5 (-15.31 points) with a trading value of THB64b (THB73b the previous day).  
2) Foreign investors net sold Thai shares by THB1.158b. Institutional investors net sold by THB2.491b. There were net Short on SET50 Index Futures by 8,652 contracts.
 
Stock Picks &amp; Trading Idea
SINGER (TP raised to THB17.7): 2Q20 earnings is forecast at THB120m (+129% YoY), a double growth despite COVID-19. Maybank expects profit momentum should continue in 3Q-4Q20, although a low season, to THB100m/quarter, driven by HP-C4C loan portfolios.   
 
Investment Theme
Global crude oil fluctuated on key factors this week: Last week the IEA raised its expectations of global crude oil demand by 400,000 barrels per day from previous estimates. This causes global crude oil demand to reach 92.1 million barrels, supporting global crude oil prices to rebound at the end of last week. However, the IEA is still concerned about the second wave of COVID-19 outbreaks which is considered a significant risk that must be closely monitored. 
Regarding the supply situation, the latest US weekly oil rigs report has decreased by another 4 rigs to 181 rigs, considered the lowest point in 11 years and is a decline for 17 consecutive weeks. This weekend, it is likely that the oil rigs will drop to the lowest point in June 2009 at 179 or not. The last factor is considered a very important issue for the oil market this week. That is the JMMC meeting on 15 July, which will determine the production capacity of the OPEC+ group, currently cut down to 9.6 million barrels per day. 
Will there be the opportunity to extend the production cut or not? If the production cut is extended, it will be considered a positive psychology for the oil market because at present the market estimates that OPEC+ should follow the previous agreement to reduce production in August to just 7.7 million bbls per day which may pressure short-term oil prices.
 
Investment Strategy: Today, the SET is expected to rebound in a range of the support at 1,340 and resistance at 1,380 points. Focus on stocks with strong  earnings outlook. Today’s ATO top pick stocks are “SINGER, DCC, CBG”.
 
Big Issue
US weekly crude oil rigs decreased by 4 to 181 rigs, a 17-week decline and the lowest in 11 years.
 
Eyes on
14 July: China Exports (June), China Trade balance (June), US CPI (June), BOJ meeting (14-15 July)
15 July: JMMC meeting, discussing OPEC+ production cut extension or not, US Industrial production (June)
SET-listed companies’ 2Q20 earnings results preview and report      
 
Technical View
SET       Support : 1340/1332       Resistance : 1360/1370
 