Amid the volatile market, KTBST Securities has recommended attractive stocks, led by BCH and CENTEL which are expected to benefit from the country’s reopening and a bounce back in the tourism industry after Covid-19, as well as ASIAN that is likely to gain from Thai baht weakening.
Thai stock market opened 0.30 percent higher on Tuesday, rebounding from yesterday’s dramatic drop.
The SET Index slid 3.6% to 1,574 between June 6 – 21, in line with the volatile global equities market as US inflation recently reached a record high and several Fed voting committees opted for hawkish action.
Key factors that may affect the direction of the stock market include: 1) The Russia-Ukraine war, which settlement could take years according to NATO; 2) The lifting of China’s lockdown policy; 3) US-China trade talks; 4) Thai policy rate hike. If the Bank of Thailand delays a rate hike, interest spreads will widen, which will have a negative impact on foreign fund inflows and currency exchanges; and 5) Thai government is negotiating with refineries to contribute some of refinery margin gains to the fuel oil fund to prevent rising domestic oil prices.
KTBST forecast Thai equities will continue to be buffeted by several ex-and internal factors. Foreign funds will flow out of the Thai stock market if the Bank of Thailand maintains the policy rate at the upcoming meeting on August 10.
Therefore, given the current state of the market, KTBST has highlighted the top 5 most attractive stocks that are now worth considering an investment in, as follows;
Bangkok CHain Hospital Pcl. (SET: BCH) (BUY, TP: THB26.00): The company stands to benefit from border reopening, which, thus far, has experienced higher customers from the Middle East and CLMV.
Asian Sea Corporation Pcl. (SET: ASIAN) (BUY, TP: THB19.50): The company benefits from baht weakening and the global food crisis.
Sahamitr Pressure Container Pcl. (SET: SMPC) (BUY, TP: THB19.00): Earnings are forecasted to grow, supported by a weaker baht, while its D/E remains a low of 0.82x amid strong demand for LPG cylinders.
CK Power Pcl. (SET: CKP) (BUY, TP: THB7.40): The company’s D/E is 0.85x and the fixed-rate loan is 80% of the total loan. The soon-to-be-signed Luang Prabang hydropower plant and the business’s peak season are the key catalysts.
Central Plaza Hotel Pcl. (SET: CENTEL) (BUY, TP: THB50.00): The hotel business has enjoyed rising tourists, and the quick service restaurant will see higher customers given borders reopening, which should boost consumer spending power.