Thai tourism stocks rallied on Thursday as Thailand prepares to declare COVID-19 an endemic disease by the middle of the year.
The share price of Minor International Plc. (SET: MINT) rose THB1.25/share or 4.17% to THB31.25/share, with a trading value of THB417 million.
The share price of S Hotels and Resorts Plc. (SET: SHR) rose THB0.10/share or 3.07% to THB3.36/share, with a trading value of THB19 million.
The share price of Central Plaza Hotel Plc. (SET: CENTEL) rose THB1.00/share or 2.78% to THB37.00/share, with a trading value of THB184 million.
The share price of The Erawan Group Plc. (SET: ERW) rose THB0.04/share or 1.28% to THB3.16/share, with a trading value of THB18 million.
The share price of Airports of Thailand Plc. (SET: AOT) rose THB0.25/share or 0.39% to THB64.50/share, with a trading value of THB705 million.
According to KTBST Securities, Thailand’s preparation to declare COVID-19 an endemic disease by mid-year will benefit equities in the tourism sector. This is because tourists will return, and there is a possibility that the economy may rebound more quickly than projected. For the tourism sector, the stocks that will benefit the most are ERW, CENTEL, MINT, and SHR.
KTBST maintains an Outperform rating on the tourism sector and favors MINT (TP: THB40.00) thanks to MINT’s European operations recovering more quickly than those in Thailand. KTBST also likes CENTEL (TP: THB45.00) due to the positive outlook for hotels and cuisine business. MINT and SHR (TP: THB4.50) are expected to outperform the group.