Kasikorn Securities (KS) wrote in its analysis report regarding a significant progress in trade negotiations between the United States and China, with the two countries reaching a Phase One agreement.
Under this deal, the US agreed to reduce tariffs on Chinese imports from 145% to 30%, while China cut tariffs on US goods from 125% to just 10% during the initial 90-day period following the agreement’s implementation. This breakthrough has fueled a positive response across global stock markets.
KS noted that these results exceeded market expectations, which previously assumed each country would only halve its existing tariff rates. KS maintains a positive outlook on the Thai stock market, expecting further strength.
Looking ahead to May, KS predicts the SET Index will experience a mini rally, moving within a range of 1,145–1,275 points.
This forecast is based on the assumption of a Re-rating Price-to-Earnings Ratio (PER) from -1 Standard Deviation (SD) to -0.5 SD, reflecting improving investment sentiment. A similar recovery is seen in the MSCI ACWI, which is rebounding from -1 SD back towards the average.
KS highlights the following stocks as top recommendations:
- SCG Packaging Public Company Limited (SET: SCGP)
- Amata Corporation Public Company Limited (SET: AMATA)
- Praram 9 Hospital Public Company Limited (SET: PR9)
- CP All Public Company Limited (SET: CPALL)
- Global Power Synergy Public Company Limited (SET: GPSC)
In the short term, KS anticipates speculative interest in petrochemical and electronics shares, such as PTT Global Chemical Public Company Limited (SET: PTTGC) and Hana Microelectronics Public Company Limited (SET: HANA), driven by the view that the global cycle is beginning to recover.
