Anutin Charnvirakul, Thailand’s Prime Minister and Minister of the Interior, stated that he recently had the opportunity to meet with the U.S. President Donald Trump in which he requested a reconsideration for a lower tariff rate from the current 19%.
The Prime Minister later noted that the President promised that he would inform the responsible U.S. trade representative to hold discussions on relaxing these conditions, aiming to provide Thailand with better terms. Negotiations regarding trade tariffs are currently ongoing, with both sides awaiting the latest (final) draft agreement for signing.
Analysts at Phillip Securities (Thailand) revealed that discussions between Mr. Anutin and Donald Trump serve as a positive sentiment for the Thai stock market. In terms of investment strategy, it is recommended to speculate on export-related stocks, such as exporters and industrial estate groups. These include Amata Corporation (AMATA), Delta Electronics (Thailand) (DELTA), Hana Microelectronics (HANA), KCE Electronics (KCE), Sri Trang Agro-Industry (STA), Sri Trang Gloves (Thailand) (STGT), Thai Union Group (TU), and WHA Corporation (WHA).
Asia Plus Securities indicated that the Federal Reserve has further reduced interest rates by 0.25 percentage points, supporting the likelihood of a weaker baht in the near future. However, the baht has temporarily strengthened; on October 29th, foreigners bought Thai bonds valued at 24 billion baht—the highest in five months. Over the past ten years, foreign inflows into Thai bonds have often supported the Thai stock index’s upward trend in subsequent periods.
Therefore, the recommended investment strategy is to focus on stocks that benefit from the baht’s potential depreciation in the near future, as well as those poised to gain from the anticipated reduction of tariff rates—such as Charoen Pokphand Foods (CPF), WHA, AMATA, and TU.
Stocks benefiting from the ‘Khon La Khrueng’ spending scheme include CP Axtra (CPAXT), Berli Jucker (BJC), and Ichitan Group (ICHI). Meanwhile, stocks positioned to gain post-vegetarian festival include CPF, Betagro (BTG), and Thai Foods Group (TFG).
