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 70.25 (S$2.60) is heading towards the key 68 (S$2.51) support level. We have held above this level since May last year where buyers have returned on any dips so far.
From the moving averages which are flattening out, we can see that it is in a sideways consolidation in this range of 68 to 76 (S$2.51 to S$2.81).
For a clear uptrend to form, we need to stage a breakout above 76 (S$2.81) where target can potentially be raised to 82 (S$3.03). 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$2.60.
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$2.60, we are looking at an 8.1% potential upside based on target of S$2.81.
One can try to time entry near the support level at 68 (S$2.51) 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 162 (S$6.00) has indeed pushed higher as mentioned in previous article but weakness returned with oil prices falling the past week. It is now back to the 160 (S$5.92) support that has been holding since July this year.
With 160 (S$5.92) as a base now, uptrend looks intact with more short-term upside towards 180 (S$6.66) target. This level is where some heavy selling can appear again as we have seen since last year.
One can consider timing entry on dips near 160 (S$5.92) for a potential rebound and a break of 180 (S$6.66) to head to 195 (S$7.21). Longer term uptrend looks intact above this support level.
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$5.97.
From TPED current price of S$5.97, we are looking at a 11.5% potential upside as per targets to S$6.66.
Potential gains can be more if you time your entry to get in if the Thai underlying PTTEP.BK were to head towards the 160 (S$5.92) 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.
We have seen selling in CPALL over the past month with the stock slowly heading towards its key support level again.
This support level would be from 58 (S$2.14) - 60 (S$2.22) where we have seen a couple of rebounds since 2021.
With the 20-day moving average still sloping down and prices below it, short term trend can still be bearish for now as we head towards this support.
It is currently trading at 60.75 (S$2.25), so any dips towards the support mentioned above can be attractive levels for entry to catch any rebound, especially if the short term trend flattens out or reverses back up.
It has been in a sideways consolidation for more than 2 years from these support towards the 70 (S$2.59) resistance where one can consider locking in some profit as it rises near there.
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$2.25.
From TCPD current price of S$2.25, we are looking at a 15.1% potential upside as per targets to S$2.59.
Footnote: Currency conversion used from THB to SGD is 0.037.
