Krungsri Securities viewed that Thai technology stocks are getting more attraction from foreign funds following the policy push from the government and the relocation of tech giants to Thailand.
The brokerage company wrote in a note highlighting four factors that are supporting technology stocks in Thailand;
1) An immediate policy rollout that should benefit PPA of power generators for the expansion of data centres.
2) The relocation of tech giants to Thailand should boost sentiment for industrial operators such as WHA and contractors in the data center field such as INSET.
3) A fire incident at one of Singapore’s data center posts a positive sentiment boosting foreign investment in Thailand. Telecommunication stocks such as TRUE and ADVANC should also benefit from their services.
4) The application for Virtual Bank is expected to be active as the deadline is approaching. KSS expected BE8 and BBIK to benefit from the digital adoption.
Strategically, KSS recommended investors to pick stocks in the up- and mid-stream such as WHA (TP 6.00) GULF (TP Con 57.3) ADVANC (TP 280) BE8 (TP 20) and BBIK (TP 40).
