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.
Following up from the previous article released in early February 2024, we have continued to stay below the key resistance at 66 (S$2.50). This resistance was originally the support we broke down in Nov last year, and a firm move above would be needed for more upside to happen towards 76 (S$2.90) as per targets drawn.
The short-term trend is still slightly up for now as seen by the upward sloping 20-day moving average. However, this line may flatten if we continue to stay below the resistance at 66 (S$2.50), and this can lead to a sideway consolidation.
Over the past 3 months, we have managed to find a bottom around the 58 (S$2.20) level where buyers started to appear. This is a key level we have rebounded from since more than 2 years back so likely to see some buying pressure as prices approached here.
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$2.37.
As mentioned, this SDR is like a normal Singapore stock where its traded currency is in SGD and settlement procedures the same.
A break and close above 66 (S$2.50) can be a signal to enter a long trade aggressively to ride more momentum with a 14% upside as per target to 76 (S$2.90). Or, if it does retrace 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 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 has managed to hold above the 150 (S$5.70) new support level over the past 1 month. This support was originally the resistance we traded below since Dec last year and finally a break above in the last month which is a positive.
As long as we hold above the 150 (S$5.70) support, further upside possible as per target towards 180 (S$6.85) which was the highs seen last year.
We have found some temporary resistance at 155 (S$5.90) over the past 2 weeks where some profit taking is happening so likely to see some consolidation now in the short term. The 20-day moving average line, which represents the short-term trend has also begun to flatten out due to this.
One can consider entry above 150 (S$5.70) support for a potential break of 155 (S$5.90). Would be good to have a stop loss level at around 147 (S$5.58) to get out in case we fail to hold above 150 (S$5.70) support.
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$5.72.
For an entry near 150 (S$5.70) to ride to 180 (S$6.85), we are looking at an 18.8% 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.
We have indeed seen a rebound for CPALL.BK from the 50 (S$1.90) support over the past month and it is now approaching the key resistance at 60 (S$2.28). Here is where some profit taking can happen again like we are seeing now.
We have also spotted some bearish candles like a Doji appearing in the last week (27 Feb 2024) as we near this 60 (S$2.28) resistance, so it is possible to see a slight retracement before an attempt to break this level again.
The 20-day moving average line, which represents the short-term trend is still pointing up with prices above for now so it is bullish. However, for the upside reversal to continue, we need to break the key resistance at 60 (S$2.28) firmly, with a close above on volume which can be a good signal.
One can consider an aggressive entry if it does break the key resistance at 60 (S$2.28) where target can be to 74 (S$2.80).
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$2.16. For an entry above the 60 (S$2.28) resistance on a break, we are looking at a 21% potential upside as per targets to S$2.80.
Footnote: Currency conversion used from THB to SGD is 0.038.
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