Asia Plus Securities noted that political stability in Thailand has returned, allowing for the continuous implementation of the 2024 and 2025 budgets by the government. The analyst anticipates significant growth for the country, leveraging a low base effect, with GDP in the second half of 2024 poised to expand by 3.5% following a 1.9% growth in the initial six months. The introduction of the digital wallet scheme is expected to further drive economic momentum and foster growth in the coming periods.
Despite a modest net purchase of Thai stocks amounting to THB 4.1 billion this year, institutional investors are poised to potentially expand their holdings in two specific sectors, including
- The new ESG Fund, which started on August 16, 2024 and has already attracted capital inflows of approximately THB 3.4 billion, with anticipated inflows projected to reach THB 20-30 billion in the latter half of the year.
- The upcoming introduction of the new Vayupak Fund within the next 1-2 months, which is expected to attract substantial investments, with expected inflows ranging between THB 100-150 billion.
Following these developments, the analyst has identified and given a “Speculative-Buy” recommendation for 10 stocks expected to gain from increased investments from the ESG AAA Rating and inflow from Vayupak Fund. These stocks include PTT, BCP, KTB, ADVANC, SCC, KBANK, CRC, CPF, SCGP, and OR.
