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 4 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 Apr 2024, 68 (S$2.52) is still a resistance where selling has happened again. A firm move above this resistance would be needed for more upside to happen towards 76 (S$2.80) as per targets drawn.
We have seen a dip towards the 63 (S$2.33) near term support where some bargain hunting appeared. We are starting to see some signs of the longer-term trend potentially pointing up with the 100-day moving average red line starting to slope up finally and price above it.
Over the past 3 months, we have managed to find a bottom around the 58 (S$2.15) level and a higher support has been found at 63 (S$2.33) since which is a positive.
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$2.43.
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 68 (S$2.52) can be a signal to enter a long trade aggressively to ride more momentum with a 11% upside as per target to 76 (S$2.80). Or, if it does retrace back to near its support again at 63 (S$2.33), an entry can be taken for a potential upside of about 7% if we rebound back to levels like 68 (S$2.52).
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 seen weakness again and seen a breakdown below the 155 (S$5.74) support level over the past few days. Have been holding above this higher support for more than 3 weeks so a move below can be a short term bearish.
With 155 (S$5.74) as a near term resistance now, we can potentially see a downwards retracement towards 145 (S$5.37), which is the next support holding since the beginning of the year.
One can consider entry above 145 (S$5.37) on any slight dips near it if the support holds.
Would be good to have a stop loss level at around 142 (S$5.25) to get out in case we fail to hold above 145 (S$5.37) 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$5.56.
For an entry near 145 (S$5.37) to ride to 155 (S$5.74), we are looking at a 6% potential upside as per targets.
3) CP All (CPALL.BK) Operates the 7-Eleven convenience store chain in Thailand.
CPALL has found good support at 54 (S$2.00), over the past 2 months with signs of a reversal still ongoing.
We can see that the longer trend has ceased to point lower with the 100-day moving average line beginning to flatten and eventually pointing up.
Currently facing a key resistance at 60 (S$2.22), for now where we have traded below for 6 months now and where selling has happened. As prices approach 60 (S$2.22), we can see some profit taking again but watching to see if we can break this key resistance.
With the 20-day short-term moving average green line pointing up, any firm move above 60 (S$2.22) can see the reversal continue even faster towards 68 (S$2.52).
With this happening, 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 confirmation.
So how does one take a position in CPALL from the SDR traded on the SGX?
Well, you can take a position in this SDR, which is named CP ALL TH SDR (TCPD) currently priced at S$2.15. As it approaches the 54 (S$2.00) support level again, one can time entry on dips for a potential rebound like we have seen in the past 2 months. We are looking at a 10% potential upside as per targets to 60 (S$2.22).
Would be good to have a stop loss level at around 53 (S$1.96) to get out in case we fail to hold above 54 (S$2.00) support.
4) Kasikorn Bank (KBANK.BK) is Thailand’s best domestic bank, beneficiary of BOT’s interest rate hike. Highest traded value bank, ranking 1st in SME Loan and High Net Worth clients.
KBANK.BK has seen some strength over the past 3 weeks with prices holding above the 120 (S$4.44) support.
Here is where we have seen a couple of rebounds since Jan this year and seems like we are pushing away from this support now. Short term trend has started to turn up on this move with the 20-day moving average green line sloping up as well.
The upside target can be to 140 (S$5.18) where which is a key resistance to watch, and we have been trading below it since Feb last year.
Therefore, one can consider locking in profits as we approach 140 (S$5.18) resistance level as that is where selling can appear again.
So how does one take a position in Kasikorn Bank from the SDR traded on the SGX?
Well, you can take a position in this SDR, which is named Kasikorn Bank TH SDR (TKKD) currently priced at S$4.79.
One can consider entry above 120 (S$4.44) on any slight dips near it if you see any bullish reversal candlestick near the support. We are looking at a 15.2% potential upside as per targets to 140 (S$5.18).
Would be good to have a stop loss level at around 115 (S$4.26) to get out in case we fail to hold above the support.
Footnote: Currency conversion used from THB to SGD is 0.037.
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