Thailand’s Top 3 Power Plays on SGX: Unmissable Stocks for 2024

Unlocking Growth Potential and Maximizing Returns with Singapore Depository Receipts (SDRs)

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:

1) Gulf Energy (GULF.BK) - One of Thailand’s largest Gas-fired Power and Renewable energy producer

GULF.BK have continued to push higher since we covered it last month on our Thailand SDR article.

Over the past 2 weeks, it has broken a key resistance at 50 (S$1.95) that we have been trading below since May last year.

With the 20-day moving average green line sloping up also, it has held above the new support 50 (S$1.95) for 2 weeks.

Seems like it is even attempting to break the 55 (S$2.14) key resistance today to push to an all-time high. A bullish move if we can hold above this new support in the next few days.

This can be very meaningful and can show that buyers are prepared to take it to the next phase up.

The longer-term trend is also potentially seeing signs of a reversal with the 100-day moving average red line about to cross above the 200-day moving average blue line.

Target can be to 60 (S$2.34) in the near term as seen.

One can consider entry above 50 (S$1.95) on any slight dips near it. Would be good to have a stop loss level at around 47 (S$1.83) to get out in case we fail to hold above 50 (S$1.95) support.

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$2.15.

For an entry near 50 (S$1.95) to ride to 60 (S$2.34), we are looking at about 18% potential upside as per targets.

2) Advanced Info Service (ADVANC.BK) - Largest Telco in Thailand

ADVANC pushed even higher and breached our 250 (S$0.97) target mentioned in the previous note last month.

It has broken the 250 (S$0.97) resistance over the past 2 days and is pushing higher now to an all-time high.

With 250 (S$0.97) as the new support now, the uptrend looks firmly intact with target to 280 (S$1.09) then the psychological 300 (S$1.17).

Can see that the longer-term trend has turned up with the 100-day moving average red line above the 200-day moving average blue line.

The 20-day moving average green line has sloped up firmly over the past month too, which shows that the short-term trend is positive.

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$1.04. On any dips towards the new higher support at 250 (S$0.97), one can consider an entry for a rebound towards 280 (S$1.09).

Would be good to have a stop loss level below 250 (S$0.97) 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 baht to SGD will be to times 0.039 then divided by 10.

3) Delta Electronics (DELTA.BK) - Largest company listed on SET, beneficiary of structural trends of EV adoption and data centers

DELTA.BK has found some good support at 100 (S$3.90) over the past month with buyers coming back on dips near this level.

This is a key psychological resistance turned support level now and as long as we hold above the uptrend looks intact.

Can see that the longer-term trend has turned up with the 100-day moving average red line above the 200-day moving average blue line in the past few weeks.

The 20-day moving average green line has sloped up firmly over the past month too, which shows that the short-term trend is positive.

The upside target can be towards 120 (S$4.68) where we saw some heavy selling in Jun - July last year.

With price holding above 100 (S$3.90) now, can be an opportunity to get in for the reversal to continue towards target.

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$4.19.

One can consider entry above 100 (S$3.90) on any slight dips near it for a rebound. We are looking at a 18% potential upside as per targets to 120 (S$4.68).

Would be good to have a stop loss level at around 95 (S$3.70) to get out in case we fail to hold above the support.

Footnote: Currency conversion used from THB to SGD is 0.039.

About the Author - Joey Choy

Joey is Singapore’s renowned mentor on how to make an income by trading the stock market, an author and one of the most-watched, quoted and followed stock trading trainers in Singapore. Over the years, he has conducted numerous full house seminars, enriching thousands to trade more profitably. 

Joey’s come back story from a S$740k debt has been featured in the Business Times and inspired thousands in Singapore. In less than 3 years, he is highly regarded as one of the Top Tier Remisiers (Stock Brokers) and Traders, bagging numerous yearly awards like Top Trading Representative and Top CFD Achiever every year from 2014 to 2023 in Phillip Securities.

More about Joey here

Hope you have found the above content useful 😃 

If you have yet to attend my FREE webinar on how I select HIGH PROBABILITY WINNING STOCKS, you can check it out here!

Look forward to see you on the inside!

- Joey

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