Thailand’s SET Index closed at 1,382.68 points, increased 4.96 points or 0.36% with a trading value of 40.2 billion baht. The analyst stated that the Thai stock market moved positively, following strong 1Q24 earnings results of listed companies with positive outlook for the second and third quarter. Bloomberg rated Thai stock EPS this year at THB94-96, which is still lower than average P/E. Still, it reflected an increasing attractiveness for Thai stocks.
The People’s Bank of China announced in three separate statements on Friday that it would eliminate the minimum interest rate levels for first and second home mortgages at a national level. Local branches of the central bank will have the authority to set the floor for commercial mortgages, while financial institutions are instructed to determine interest rates based on business conditions and client risks.
Additionally, China will be changing the minimum down-payment ratio for first-time homebuyers to no less than 15% and for residents purchasing a second home to no less than 25%, according to another statement from the central bank.
FSS International Investment Advisory (FSSIA) believed that the current valuation of SET Index is very attractive for a mid-to-long-term investment, following better-than-expected earnings in the first quarter of 2024.
The SET index is believed to have already reached its bottom and is expected to recover. The report maintains the SET target for 2024 at 1,470. With a 2024 PER of 15x and a significant earnings yield gap, the current index is considered attractive for medium-to-long-term investments.
The recommended strategy focuses on stocks with strong earnings outlooks and appealing valuations, with top picks including AOT, BDMS, CPALL, CPN, GPSC, NSL, SHR, SJWD, TIDLOR, and TU.
