Yuanta Securities (Thailand) Co., Ltd. has revealed that typically significant Window Dressing activities by institutional investors are not anticipated in the first quarter of each year. This is primarily because the market usually lacks clear movement. However, this year is expected to be different. The Thai stock market (SET Index) has recorded a negative return of 16.2% since the start of the year, marking its worst performance in 25 years (excluding the impact of the COVID-19 pandemic).
Given such performance, it is expected that institutional investors may engage in Window Dressing to mitigate the poor appearance of their investment portfolios by the end of the quarter. Presently, the valuation of the Thai market is seen as highly attractive, which may incentivize institutional investors to increase their investment weight during this time.
Furthermore, the report highlights stocks that have underperformed the SET50 and are still undervalued, suggesting they may become key targets for institutional investors looking to increase their investment weight at the end of the quarter.
Notable stocks to watch include Central Retail Corporation Public Company Limited (SET: CRC), Global Power Synergy Public Company Limited (SET: GPSC), Carabao Group Public Company Limited (SET: CBG), Bangkok Expressway and Metro Public Company Limited (SET: BEM), PTT Global Chemical Public Company Limited (SET: PTTGC), Banpu Public Company Limited (SET: BANPU), and Osotspa Public Company Limited (SET: OSP). These stocks are considered to have sound fundamentals and attractive stock prices.
For investors seeking recovery stocks towards the end of this quarter, investing in these options may provide a beneficial opportunity to enhance the potential of their investment portfolios for long-term growth.
