Have you ever wondered how you can take a position in some of the Top Thailand companies listed on the SET, without the hassle and additional cost of buying the stocks directly there?
Since end of May 2023, it is now possible.
We can take a position in some of the Top Thailand companies like any other stocks listed on the Singapore Exchange.
We can buy what is called Singapore Depository Receipts, in short, SDRs.
SDRs are instruments representing beneficial interest in an underlying security listed on an overseas exchange and are issued for trading on the securities market of the Singapore Exchange by an intermediary, SDR Issuer, on an unsponsored basis.
It will enable SGX investors to expand investment horizons to overseas listed companies in a simple and cost-efficient manner.
So, with the launch of Thai Underlying SDR as at end May 2023, traders and investors in Singapore can now invest in such Thai companies just like any Singapore stocks listed on the SGX with the same settlement procedures and SGD traded currency.
There are 3 blue chips Thai underlying SDRs currently which is what I will be talking about in this article and how you can potentially profit from.
I will be analyzing the charts of these 3 underlying Thailand stocks before sharing how one can take a position on the SDRs listed on the SGX and the potential target price based on current price levels.
The 3 underlying Thai stocks listed in the SET and their codes are:
Underlying Thai stocks on SET | Thai SDR on SGX | |
Airports of Thailand | AOT.BK | TATD |
PTT Exploration & Production | PTTEP.BK | TPED |
CP All | CPALL.BK | TCPD |
1) Airports of Thailand (AOT.BK) manages and operates airports in Thailand and is a top Blue chip on SET with the highest weightage of 8% as Thailand is focused on Tourism.
From the chart above, you can see that AOT.BK trading at 71 (S$2.77)now has found some good support at the 68 (S$2.65)price level for about a year. This support was also previously a key resistance in 2020 – 2022 which we have broken up and it is still maintaining above thus far.
I would say that the trend has turned from an uptrend since Apr 2022 to a sideways trend now that began since the beginning of the year. The moving averages have started to flatten out as seen as we trade in this range of 68 to 76 (S$2.65 to S$2.96) over the past few months.
Only a firm bullish price actions above 76 (S$2.96)can see the uptrend continue with target potentially raised to 82 (S$3.20) which was the previous high we have seen for this stock in Nov 2019, where it may attempt to test again.
So how does one take a position in Airport of Thailand from the SDR listed on the SGX?
Well, you can take a position in this SDR, which is named AIRPORTS OF TH TH SDR (TATD), currently priced at S$2.70.
As mentioned, this SDR is like a normal Singapore stock where its traded currency is in SGD and settlement procedures the same.
From TATD current price of S$2.70, we are looking at an 18.5% potential upside based on target of S$3.20.
Of course, for this target to play out, the underlying stock AOT.BK must hold above its 68 (S$2.65) support and eventually break the 76 (S$2.96) resistance as mentioned.
2) PTT Exploration & Production (PTTEP.BK) is a leading oil and gas exploration and production company in Thailand and is a top Blue chip on SET with the top 10 weightage.
From the chart above you can see that PTTEP.BK trading at 151 (S$5.89)now has seen some weakness in recent months as it broke the key 160 (S$6.24) support in Feb 2023. There are also some signs of the trend turning down since early Apr with the 100-day moving average crossing down below the 200-day moving average.
Thankfully, we have found some support 135 (S$5.27) level where we have rebounded about 3 times. This support is key to prevent more downside from happening. Any break below can trigger more selling.
As price is to near the 135 (S$5.27) supports, it could be an opportunity to get in to ride the rebound towards 160 (S$6.24) resistance as per target.
So how does one take a position in PTT Exploration & Production from the SDR listed on the SGX?
Well, you can take a position in this SDR, which is named PTTEP TH SDR (TPED), currently priced at S$5.79.
From TPED current price of S$5.79, we are looking at a 7.8% potential upside as per targets to S$6.24 .
Potential gains can be more if you time your entry to get in if the Thai underlying PTTEP.BK were to head towards the 135 (S$5.27) support where upside rewards will be more.
3) CP ALL (CPALL.BK) Operates the 7-Eleven convenience store chain in Thailand and has the most extensive convenience store network in the country.
From the chart above, CPALL.BK has been defensive and has been in a sideway trend since about 3 years ago in 2020. You can see that the longer-term moving averages are all pointing sideways with occasional crosses to one another.
We have found good support at the 52 – 56 (S$2.03 - S$2.18) price level where we have experienced many rebounds. These are where entries can be taken to ride any rebound towards the 70 – 74 (S$2.73 – S$2.89) key resistance which can be targets where selling can return.
We are currently at about 63 (S$2.46) and have also found a higher support at 60 (S$2.34) since the beginning of the year.
So how does one take a position in CP ALL from the SDR listed on the SGX?
Well, you can take a position in this SDR, which is named CP ALL TH SDR (TCPD) currently priced at S$2.40.
From TCPD current price of S$2.40, we are looking at a 13.8% potential upside as per targets to S$2.73.
For the above to happen, this support for the Thai underlying CPALL.BK at 60 (S$2.34) must hold for any reversal to occur, or we may see some short term weakness again.
Footnote: Currency conversion used from THB to SGD is 0.039.
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