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.
Over the past 3 months, we have seen good higher support forming at the 63 (S$2.33) level where we saw a couple of rebounds. This is a good thing as we are now consolidating at a higher level, from the 58 (S$2.15) support we saw in Dec last year.
68 (S$2.52) is still a resistance where selling has happened again and that is where one can consider locking in some profits too as it approaches. A firm break above this resistance can lead to more upside towards 76 (S$2.80).
Short-term trend indicators are pointing sideways for now as we consolidate in this range above. There are also signs of the long-term trend gradually reversing too but more confirmation required from the 100- and 200-day moving averages when we see a bullish crossover.
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$2.36.
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 to 76 (S$2.80). Or, if it does retrace back to near its support again at 63 (S$2.33) as mentioned, 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 is back to some sideways consolidation again in the range of 150 (S$5.55) to 160 (S$5.92). You can see that all the moving averages in the longer term and the short term are all flattening out for now.
One good thing to note though is that support has came out quite strongly at 150 (S$5.55). We have spotted some bullish reversal candlesticks near this support, a rebound seen over the past 2 months.
To note that 160 (S$5.92) is a near term resistance for now which we attempted to break in April 2024 but failed. Some selling expected near there again if prices were to approach. Need to see a firm break above this level for a reversal towards 180 (S$6.66).
One can consider entry above 150 (S$5.55) 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 150 (S$5.55) 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$5.67.
For an entry near 150 (S$5.55) to ride to 160 (S$5.92), we are looking at about 6% potential upside as per targets.
3) Advanced Info Service (ADVANC.BK) Largest Telco in Thailand.
ADVANC has seen a rebound from its 195 (S$0.72) support over the past month with it nearing resistance at 210 (S$0.77) again. Here is where selling has happened since February this year and sellers seem to be still lurking there. Currently seeing some profit taking near this resistance.
Any firm break above the 210 (S$0.77) key resistance can open the way finally to more upside as it retests its previous high at 230 (S$0.85).
The 20-day moving average green line has started to point up over the past 2 weeks, which shows that short term trend has turned positive. However, as mentioned still need to clear the resistance at 210 (S$0.77) first for now.
So how does one take a position in ADVANC from the SDR traded on the SGX?
Well, you can take a position in this SDR, which is named Advanced Info Service (TADD) currently priced at S$0.755. As it approaches the 195 (S$0.72) 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 7% potential upside as per targets to 210 (S$0.77).
Would be good to have a stop loss level at around 190 (S$0.70) to get out in case we fail to hold above 195 (S$0.72) support. Note that for this ADVANC, there is a ratio of 10 SDR to 1 underlying stock, so the conversion from Thai bath to SGD will be to times 0.037 then divided by 10.
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 support coming back over the past 2 months at 70 (S$2.59) when we saw some bargain hunting. Can see that the short term 20 day moving average green line is also flattening out which is a good sign compared to March where it was sloping down aggressively.
Resistance would be quite clear at 80 (S$2.96) for now where we attempted to break in April but retraced down instead. Can expect some selling to occur as we near this resistance again.
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.
Only a firm move above 80 (S$2.96) can lead the reversal firmly towards 95 (S$3.52) where we may gradually see the longer-term trend turn up.
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$2.81.
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 actually saw a Doji candle over the past week which can show that buyers are still near this support. We are looking at a 12% potential upside as per targets to 80 (S$2.96) first.
Would be good to have a stop loss level at around 66 (S$2.44) 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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