Thailand’s benchmark stock index traded higher on Monday as capital flowed into big-cap shares amid expectations of a slower pace of US Federal Reserve rate hikes and China’s reopening, which could benefit Thailand’s tourism industry.
As of 10.21 A.M. (Thai time), the SET Index rose 14.69 points, or 0.88%, to 1,688.55.
Krungsri Securities expects the SET to climb up and test 1,685-1,690 resistance on expectations of a slower Fed tightening pace. US average hourly wage missed expectations while Services sector index fell, dragging US bond yields lower and supporting equity-linked inflows. Thailand’s economic growth and investment sentiment will benefit from China’s reopening.
The analyst has recommended GPSC (BUY/TP THB81.75) – boost from softer gas cost as well higher Ft of 154.92 satang/unit, which would raise power tariff by 13% to THB5.34. Strong baht could also lead to FX gain, and CBG (BUY/TP THB108) – 4Q22 net profit is projected to rise to THB650 million (+37% QoQ, +6% YoY) on stronger sales and lower aluminum, gas, and transportation costs. China reopening will also boost revenues as it accounted for 10% of sales pre-pandemic.
