Market Roundup 17 April 2023

1) Thai stock market overview

Thailand’s SET Index closed at 1,600.41 points, increased 7.74 points or 0.49% with a trading value of 46 billion baht. The analyst stated that the Thai stock market moved in the same direction as Asian markets in response to signs of U.S. inflation slowing down and injection from China’s central bank to boost liquidity. Meanwhile, investors were speculating on mid and big-cap stocks that have potential to record better results.

The analyst expected SET Index to move in sideways trend and recommended investors to monitor the report of China’s GDP tomorrow.


2) Tisco and Krungsri Capital give positive outlook on CPF’s spinoff business

The plan to spin off its food distribution arm of Charoen Pokphand Foods Public Company Limited (SET: CPF) receives positive feedback from analysts, seeing the move could help CPF reduce its debt and unlock more valuation for the business.

Tisco Securities stated that the key takeaway from this spinoff is CPF’s plan to reduce debt. CPF’s net debt to equity stands at 1.98x as of end-2022, close to the covenant of 2.1x. CPF’s rise in leverage stems from the Lotus acquisition.

Krungsri Capital Securities stated that the listing could be done by late 2023. The spinoff will unlock value for CPF as CPFGS should have had a higher valuation than CPF. The use of IPO funds could be used for debt repayment and investment. Meanwhile, the business will consolidate in CPF’s financial statement.


3) Thai healthcare stocks rise on fears of emerging omicron subvariant after Water Festival

Thai healthcare equities edged higher on Monday trading as traders have boosted their bets on a fresh spread of the Covid subvariant XBB.1.16, which has been gaining new cases at a rapid rate in recent days.

The share price of Bangkok Dusit Medical Services Pcl. (SET: BDMS) rose THB0.75/share, or 2.54%, to THB30.25/share.

Bangkok Chain Hospital Pcl. (SET: BCH) rose THB0.30/share, or 1.41%, to THB21.60/share.

Bumrungrad Hospital Pcl. (SET: BH) rose THB3.00/share, or 1.28%, to THB237.00/share.