Thailand’s SET Index rose much as 2% in the morning session on Wednesday following the statement from the U.S. President Donald Trump signaling an early-than-expected end to the war in the Middle East.
Trinity Securities stated that with the current SET Index level above 1,430 points. The brokerage house sees that an interesting strategy would be to selectively invest in each group of stocks. Apart from the stocks mentioned above that have an opportunity to experience a short-term relief rebound following the easing of war tensions. Trinity believes that the “bunker stocks” group, which it has recommended since last month, remains attractive. This group is considered to have relatively limited earnings risks, which are about to be announced in the next period compared to other groups. These bunker stocks are:
1) Telecommunication service providers with strong pricing power, such as ADVANC, TRUE
2) Hospitals with less dependency on Middle Eastern patients, such as BDMS, BCH, CHG
3) Large-scale essential retail stocks with a low proportion of electricity expenses, such as BJC, CPAXT
4) Industrial estate developers benefiting from accelerated foreign investment inflows, such as AMATA, WHA
