On Thursday at 10:57 AM (Bangkok time), the share price of The Siam Cement Public Company Limited (SET: SCC) rose by 2.02% or THB 3.50 to THB 176.50, with a trading value of THB 286.52 million.
Krungsri Securities (KSS) highlighted that China’s political authority, the Politburo, chaired by President Xi Jinping, is preparing to adopt a moderately loose monetary policy stance. This move indicates the possibility for the world’s second largest economy to introduce additional stimulus measures, especially during the annual Central Economic Work Conference (CEWC) on December 11-12, 2024.
The analyst perceives the development as a positive sentiment for the country, demonstrating a proactive strategy to mitigate possible economic fallout following the scheduled inauguration of President-elect Trump on January 20, 2025.
Currently, the Chinese economy is experiencing a constrained recovery, particularly within the real estate sector, which has begun to exhibit signs of deceleration post a brief rebound in October. Other sectors also showed minimal improvement amidst the gradual implementation of stimulus measures to boost liquidity for local authorities. This leads to anticipation from the analyst for the potential additional stimulus to be announced at the CEWC.
From a strategic perspective, the analyst advises investors to consider accumulating shares of companies involved in the ‘China Play’, with an emphasis on IVL (target price at THB 28.2 per share), SCC (target price at THB 220 per share), and PTTGC (target price at THB 30 per share).
