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) 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 some weakness in the past month with it slowly trading back towards its 148 (S$5.48) support. We have been holding above this level since March 2024 when some bargain hunting returned.
With the 20-day moving average green line still pointing down for now, it can mean that the short-term trend is still down.
One can wait for prices to stabilize above this support with the short-term trend flattening out at least or some bullish reversal candles first before any entry.
A potential rebound can occur all the way to 168 (S$6.22) resistance level where it has retraced lower since last year. Need to see a firm break above this level for a reversal towards 180 (S$6.66).
One can consider entry above 148 (S$5.48) 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 148 (S$5.48) 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$5.61.
For an entry near 148 (S$5.48) to ride to 168 (S$6.22), we are looking at about 13% potential upside as per targets.
2) Advanced Info Service (ADVANC.BK) Largest Telco in Thailand.
ADVANC is still seeing a firm resistance at 212 (S$0.78) over the past 4 months that it has not been able to break above.
Can see that we have experienced several slight retracements as prices head towards this resistance. An inverse head and shoulder pattern spotted which as well can point towards a reversal up if this same 212 (S$0.78) neckline resistance is broken.
Any firm break above this key resistance can open the way finally to more upside as it retests its previous high at 225 (S$0.83).
The 20-day moving average green line has started to point up over the past month, which shows that short term trend has turned positive. However, as mentioned, we still need to clear the resistance at 212 (S$0.78) first for now before the uptrend can continue.
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$0.775. On any firm move above 212 (S$0.78) on above average volume, one can consider taking a long position to ride towards 225 (S$0.83).
Would be good to have a stop loss level at below 205 (S$0.75) to get out in case the new support fails to hold. Note that for 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.
3) Delta Electronics (DELTA.BK) is the largest company listed on SET, beneficiary of structural trends of EV adoption and data centers.
DELTA.BK has finally broken above the 80 (S$2.96) resistance over the past 2 weeks. This was a key level that we have traded below since Feb 2024 so any move above can be meaningful and can mean strength.
With prices breaking above 80 (S$2.96), the 20-day moving average line has also started to slope up more aggressively as the short-term trend points up. 80 (S$2.96) would now be a new support where some bargain hunting has appeared and where one can consider locking in some positions to ride the reversal.
The upside target can be towards 95 (S$3.52) where we saw some selling in Dec last year and where some profit taking can occur. With price holding above 80 (S$2.96), may gradually see the longer-term trend turn up with the 100-day moving average potentially crossing back above the 200-day moving average.
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$3.13.
One can consider entry above 80 (S$2.96) on any slight dips near it if you see any bullish reversal candlestick near this new support. We are looking at a 17% potential upside as per targets to 95 (S$3.52) first.
Would be good to have a stop loss level at around 75 (S$2.77) to get out in case we fail to hold above the support.
Footnote: Currency conversion used from THB to SGD is 0.037.
No comments:
Post a Comment