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?
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 3 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.
Beginning April 2024, 5 new Thai stocks have been added so there are a total of 8 Thailand stocks that you can take a position now through SDRs.
I will be analyzing the charts of the top 3 underlying Thailand stocks out of these 8 stocks in my opinion one can take a position on as of today.
Will touch on how one can buy the SDRs traded on the SGX easily and the potential target price based on current price levels.
The 8 underlying Thai stocks listed in the SET and their codes are:
| No. | Underlying Thai Stocks Names | Codes on SET | Codes of Thai SDR on SGX |
| 1 | Airports of Thailand | AOT.BK | TATD |
| 2 | PTT Exploration & Production | PTTEP.BK | TPED |
| 3 | CP All | CPALL.BK | TCPD |
| 4 | Advanced Info Service | ADVANC.BK | TADD |
| 5 | Siam Cement Group | SCC.BK | TSCD |
| 6 | Kasikorn Bank | KBANK.BK | TKKD |
| 7 | Gulf Energy | GULF.BK | TGED |
| 8 | Delta Electronics | DELTA.BK | TDED |
1) Airports of Thailand (AOT.BK) manages and operates airports in Thailand and is a top Blue chip on SET with weightage of 8% as Thailand is focused on Tourism.
Following up from the previous article released in Mar 2024, we have continued to stay below the key resistance at 66 – 67 (S$2.44 - S$2.48). 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$2.80) as per targets drawn.
The short-term trend is starting to point sideways now as seen by the 20-day moving average line flattening out with 66 – 67 (S$2.44 - S$2.48) as the near-term resistance.
Over the past 3 months, we have managed to find a bottom around the 58 (S$2.15) level where buyers started to appear. This is a key level we have rebounded from 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 traded 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$2.41.
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 67 (S$2.48) can be a signal to enter a long trade aggressively to ride more momentum with a 14% upside as per target to 76 (S$2.80). Or, if it does retrace back to near its support again at 58 (S$2.15), an entry can be taken for a potential upside of about 13% if we rebound back to levels like 66 (S$2.44).
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 finally staged a firm breakout above the 155 (S$5.74) resistance level over the past week. This level was also mentioned in my previous article where we have been trading below for about 4 months.
With this 155 (S$5.74) as the new support now, further upside possible as per target towards 180 (S$6.66) which was the highs seen last year.
On this breakout move, can see that the 20-day moving average line, which represents the short-term trend has started to reverse back up. This is a positive and can lead to more strength in the short term.
One can consider entry above 155 (S$5.74) on any slight dips near it if the support holds.
Would be good to have a stop loss level at around 152 (S$5.62) to get out in case we fail to hold above 155 (S$5.74) support.
So how does one take a position in PTT Exploration & Production from the SDR traded on the SGX?
Well, you can take a position in this SDR, which is named PTTEP TH SDR (TPED), currently priced at S$5.83.
For an entry near 155 (S$5.74) to ride to 180 (S$6.66), we are looking at a 15.4% potential upside as per targets.
3) Gulf Energy (GULF.BK) is one of Thailand’s largest Gas-fired Power and Renewable energy producer.
Since Oct last year, we have seen a couple of rebounds for Gulf Energy from the 42 (S$1.55) support level. Here was where we also spotted some bullish reversal candles before the rebound which can lead to bargain hunting again near there.
The trend in the longer term is still pointing down for now, unfortunately with the 100-day moving average red line still below the longer term 200-day moving average blue line.
However, they are gradually nearing each other, and with 42 (S$1.55) support holding, there is a potential for a bullish crossover of the 100-day MA above the 200-day MA. This can lead to a trend reversal finally.
A key resistance to watch would be at 48 (S$1.78) where some profit taking can happen again.
The 20-day moving average line, which represents the short-term trend is pointing sideways which is correct as we are consolidating in the short term above 42 (S$1.55).
So how does one take a position in Gulf Energy from the SDR traded on the SGX?
Well, you can take a position in this SDR, which is named Gulf TH SDR (TGED) currently priced at S$1.58. As it approaches the 42 (S$1.55) support level again, one can time entry on dips for a potential rebound like we have seen in the past 5 months. We are looking at a 13% potential upside as per targets to 48 (S$1.78).
Would be good to have a stop loss level at around 41 (S$1.51) to get out in case we fail to hold above 42 (S$1.55) support.
4) Delta Electronics (DELTA.BK) is the largest company listed on SET, beneficiary of structural trends of EV adoption and data centers.
DELTA.BK has seen some strength over the past 2 weeks with it breaking back above the 70 (S$2.59) psychological resistance level.
Can see that we have been trading lower since the beginning of the year to below this 70 (S$2.59) resistance where we consolidated for 3 weeks.
Short term trend has started to turn up on this breakout out move with the 20-day moving average green line sloping up as well. If we hold above 70 (S$2.59), it can be the start of a short-term reversal towards 85 (S$3.15).
70 (S$2.59) is also where the 20 day moving average line is which acts like a dynamic support where stock is short term bullish above.
However, note that the trend in the longer term is still pointing down for now, unfortunately with the 100-day moving average red line still below the longer term 200-day moving average blue line.
Therefore, one can consider locking in profits as we approach 85 (S$3.15) resistance level as that is where selling can appear again.
So how does one take a position in Delta Electronics from the SDR traded on the SGX?
Well, you can take a position in this SDR, which is named Delta TH SDR (TDED) currently priced at S$2.67.
One can consider entry above 70 (S$2.59) on any slight dips near it if you see any bullish reversal candlestick near the support. We are looking at a 19.2% potential upside as per targets to 85 (S$3.15).
Would be good to have a stop loss level at around 69 (S$2.55) to get out in case we fail to hold above the support.
Footnote: Currency conversion used from THB to SGD is 0.037.
