Thai Market Insights: Exploring Trading Potentials in SGX-Listed Thai Companies

 

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.

After breaking the 70 (S$2.66) psychological support level in the past month, we have seen more weakness in AOT.BK as markets sold off as well.

There are still signs of the short-term trend pointing down as seen from the downward sloping 20-day moving average.

However, we are back to the 66 (S$2.50) support where we have rebounded in March 2023 this year which can be something to watch. This level is critical for now and any firm breakdown can unfortunately lead to more selling towards the 58 ($S2.20) to 60 (S$2.28) which were the supports in 2021.

Would want to wait for more stability at 66 (S$2.50) support to see if short term trend reverses before any entry to ride back to 70 (S$2.66). That would be when the 20-day moving average line cease pointing down and at least start to flatten out.

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$2.55.

As mentioned, this SDR is like a normal Singapore stock where its traded currency is in SGD and settlement procedures the same.

For an entry near S$2.50 support, we are looking at a 6.4% potential upside based on short term target to S$2.66 first..

 

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 currently trading at 161 (S$6.12) has traded lower again after nearing our target at 180 (S$6.84) last month. This is due to a slight decline in oil prices in the past 2 weeks.

It is now back to the 160 (S$6.08) support that has been holding since July this year.

With prices holding above 160 (S$6.08) now, the longer-term uptrend looks intact with a potential reversal towards 180 (S$6.84) target. This is also a resistance level where some heavy selling can appear again like we have experienced since September.

One can consider timing entry on any dips near 160 (S$6.08) for a potential rebound and a break of 180 (S$6.84) to head to 195 (S$7.41).

Can also consider having a stop loss level at around 156 -157 to get out in case the 160 (S$6.08) support gives way to cap any losses to a minimum.

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$6.12.

From TPED current price of S$6.12, we are looking at a 11.8% potential upside as per targets to S$6.84.

 

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.

Since breaking the 60 (S$2.28) psychological support level last month on market weakness, we have seen more selling in CPALL. It has traded lower and currently at 56.25 (S$2.13)  where the short-term trend may still be down.

We are approaching this key support at 52 (S$1.97)  that has been holding since 2016 and also where we staged an incredible rebound to 74 (S$2.81) in Oct last year. Some bullish reversal candles are starting to appear as we near this support which can point to some bargain hunting coming back finally.

When the short-term trend reverses, one can consider an entry to ride it back to 60 (S$2.28) which would now be the near-term target and resistance where profit taking can happen. One can look at the 20-day moving average to see it flattens out at least which can show a potential reversal. Currently, that is still pointing down.

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$2.11.

For an entry near the 52 (S$1.97)  support, we are looking at a 15.7% potential upside as per targets to S$2.28.

 

 

Footnote: Currency conversion used from THB to SGD is 0.038.