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 72.75 (S$2.84) is staging a rebound from the 68 (S$2.65) support level. As mentioned previously, we have held above this level since May 2022 where we have seen a couple of rebounds.
It is still consolidating in this range of 68 to 76 (S$2.65 to S$2.96) with the longer term moving averages flat which means more of a sidesway trend.
For the uptrend to take shape for firmly, we need to break above 76 (S$2.96) where target can potentially be raised to 82 (S$3.20). This 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$2.82.
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$2.82, we are looking at an 13.4% potential upside based on target of S$3.20.
One can try to time entry near the support level at 68 (S$2.65) for any potential rebound back up where the upside rewards are higher.
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.
PTTEP.BK currently trading at 161.5 (S$6.30) has found some good support a 155 (S$6.04) over the past 2 weeks with buyers returning on dips.
Resistance for now is at 165 (S$6.44) where we have traded below since February and where we also saw selling last month follow by a retracement.
Sellers are still defending this resistance and only a firm break of this 165 (S$6.44) resistance can see the reversal continue towards 180 (S$7.02) as per target.
It is starting to consolidate in the short term with 20 days moving average flattening out. One can consider timing entry near the 155 (S$6.04) support on any dips for a trade to 165 (S$6.44) first, and a potential break out.
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$6.16.
From TPED current price of S$6.16, we are looking at a 13.9% potential upside as per targets to S$7.02 .
Potential gains can be more if you time your entry to get in if the Thai underlying PTTEP.BK were to head towards the 155 (S$6.04) 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 previous article, we have indeed seen a rebound from the 60 (S$2.34) support level over the past 2 weeks. Potentially heading towards 70 (S$2.73) where some profit taking can come back again.
Note that 70 – 74 (S$2.73 – S$2.89) has been key resistance level for the last 3 years so can expect some selling near there. Would be good to also lock in some profits as prices approach there.
We are currently trading at about 65 (S$2.53) which is in the middle of this 60 to 70 (S$2.34 to S$2.73) range. Would be good to time entry near the support at 60 (S$2.34) again for a better upside.
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$2.53.
From TCPD current price of S$2.53, we are looking at a 7.9% potential upside as per targets to S$2.73.
As long as support for the Thai underlying CPALL.BK at 60 (S$2.34) holds, a long trade still possible.
Footnote: Currency conversion used from THB to SGD is 0.039.
