As Russia-Ukraine tension remains, Asia Plus Securities (ASPS) recommended accumulating nine stocks that are popular among foreign investors, especially laggard stocks with profit higher than the pre-COVID-19 level, led by BGRIM, TOP, OSP, PTT, SCCC, GPSC, WHA, SCC and AEONTS.
Russian President Vladimir Putin declared Monday evening that he will recognize the independence of two breakaway regions in eastern Ukraine, while also ordering his troops to march into the two regions in order to “keep the peace.”
Soon after Putin’s statement, NATO nations tightened their sanctions against Russia in response to the Kremlin’s march into Ukraine’s separatist regions.
The Biden Administration seeks to issue an executive order prohibiting new investment, trade, and financing in the two regions recognized as independent by Russia.
Canada’s Prime Minister Justin Trudeau announced that Canada will impose sanctions on Russia, while Japan has joined the United States in sanctioning Russia’s chip exports.
The UK government has stated that they will also issue sanctions against Russia.
Despite the volatility in global stock markets caused by Russia-Ukraine tension, Asia Plus Securities (ASPS) believes that the SET Index is less affected than European markets due to the following: 1) Thailand is geographically remote from Russia; 2) Russia accounts for only 0.4 percent of Thailand’s exports and 3.7 percent of Thailand’s tourists; and 3) strong THB support fund inflow.
Some stocks may fall as a result of negative factors. ASPS suggests accumulating stocks popular among foreign investors, particularly laggard stocks with profit margins greater than pre-COVID-19 levels, if the following criteria are met: 1) big-cap stocks with strong fundamentals and a BUY rating; 2) stocks with a 2022 profit prediction that exceeds the pre-COVID-19 profit levels; and 3) laggard stocks that underperform the SET Index.
Selected stocks are B.Grimm Power Plc. (SET: BGRIM) (TP: THB45.00), Thai Oil Plc. (SET: TOP) (TP: THB63.00), Osotspa Plc. (SET: OSP) (TP: THB37.00), PTT Plc. (SET: PTT) (TP: THB49.50), Siam City Cement Plc. (SET: SCCC) (TP: THB210.00), Global Power Synergy Plc. (SET: GPSC) (TP: THB86.50), Wha Corporation Plc. (SET: WHA) (TP: THB3.19), The Siam Cement Plc. (SET: SCC) (TP: THB500.00) and Aeon Thana Sinsap (Thailand) Plc. (SET: AEONTS) (TP: THB250.00).
