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.
After the selling seen in Nov 2023 when we broke the 66 (S$2.50) support level, we have finally found support at 58 (S$2.20) over the past month. Here was where we rebounded from at the beginning of 2022 and seems like buyers have returned here again.
The short-term trend has also started to point up over the past week as seen from the 20-day moving average reversing. With prices pushing away from this 58 (S$2.20) support, this can be a bullish move as the short-term trend has been pointing down quite firmly since Sept last year.
The upside target can be towards 66 (S$2.50) where some profit taking can happen again. This resistance which was originally the support we broke down in Nov 2023 would be key for the reversal to continue towards 76 (S$2.90).
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$2.42.
As mentioned, this SDR is like a normal Singapore stock where its traded currency is in SGD and settlement procedures the same.
If it does dip back to near its support again at 58 (S$2.20), an entry can be taken for a potential upside of about 13% if we rebound back to levels like the 66 (S$2.50).
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 151.50 (S$5.75) is attempting to break the critical 150 (S$5.70) resistance that it has traded below for more than 2 weeks now.
We have started to see the 20-day moving average line flatten out and in the midst of reversing back up. This can be a bullish play if prices were to hold above 150 (S$5.70) now with the short-term trend turning up as well as seen from 20 day moving average.
Upside target can be revised to 160 (S$6.08) then 180 (S$6.85) if this happens which was the recent high last year.
One can consider entry if prices were to hold above 150 (S$5.70) over the next few days to get more confirmation.
Can also consider having a stop loss level at around 145 (S$5.50) to get out in case we fail to hold above 150 (S$5.70) to cap any losses to a minimum.
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$5.62.
For an entry near 150 (S$5.70) to ride to 180 (S$6.85), we are looking at an 18% potential upside as per targets.
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.
CPALL.BK has found support at 50 (S$1.90) over the past month and has staged a rebound from this key psychological level.
The short-term trend as seen from the 20-day moving average line has started to slope upwards finally after 3 months of pointing down.
This can lead to a short-term reversal back to 60 (S$2.28) which was the support broken down in Oct last year before further selling.
Over the past week, it seems like a higher support has come out at 55 (S$2.10). One can consider timing entry near this higher support for a trade back to 60 (S$2.28) or perhaps wait for a better entry near 50 (S$1.90) again if it dips.
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$2.13.
For an entry near the 50 (S$1.90) support, we are looking at a 19% potential upside as per targets to S$2.28.
Footnote: Currency conversion used from THB to SGD is 0.038.
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