Yuanta Securities has laid out strategies to invest in the Thai stock market amid turmoil and uncertainty surrounding political unrest following the leaked voice recording of the Thai Prime Minister with the President of the Cambodian Senate, Hun Sen.
The SET Index underperformed regional stock markets in June, recording a -4.8% month-to-date decline compared with the MSCI Asia ex. Japan, which saw a +3.7% month-to-date gain. It is unavoidable to conclude that this is largely due to domestic political factors, including incidents such as the 14th floor at Police Hospital, cabinet reshuffles, conflicts within coalition parties, and clashes along the Thai-Cambodian border.
While awaiting clarity on political developments, Yuanta Securities stated that it is recommended to rotate into Global Play sectors, such as upstream energy, refining, and petrochemicals, or to put funds in Defensive Play segments, such as the REIT (Real Estate Investment Trust) group.
Investors can then look to “Buy”—accumulating large-cap stocks with strong earnings growth—once the political landscape becomes clearer. Examples of such stocks include ADVANC, TRUE, CPALL, CPAXT, BDMS, MINT, KBANK, SCB, GULF, GPSC, and BEM.
