Chavinda Hanratanakool, CEO of Krungthai Asset Management, expects another surge of investment in the ESG fund by the end of this year.
As Chairwoman of the Association of Investment Management Companies (AIMC), Chavinda states that there are currently 52 Thai ESG funds with assets under management totaling THB 20 trillion. According to previous Tax Saving Funds statistics, a large sum of money will be invested in the funds in the last two weeks of the year, with an additional THB 10 trillion expected during the remaining days of 2024.
Kantara Ladawan na Ayutthaya, executive director of Finansia Syrus Securities, revealed that the SET index remains sluggish, due to investors waiting for the result of Monetary Policy Committee (MPC) meetings and Federal Reserve (Fed) meetings this week. However, he expects MPC to maintain the interest rate.
Meanwhile, more than THB 10 trillion investment into Thai ESG will bosst the SET Index by 25 points, and while Vayupak Fund 1 still only has a relatively low amount of funding, Kantara is confident that the fund would receive additional funding around this period.
As for the investment strategy in December, Kantara recommended the ‘Buy on Weakness’ strategy for Asia Aviation PCL (SET: AAV), Bangkok Dusit Medical Services PCL (SET: BDMS), and CP All PCL (SET: CPALL).
Thanachart Securities reported that Thai ESG funds currently have a 73% investment ratio in stocks, most of which are funneled into major stocks with high ESG ratings at A-AAA. Thus, the securities analyst recommends several stocks with ESG ratings at A-AAA that may be eyed by Thai ESG.
Advanced Info Service PCL (SET: ADVANC) is recommended due to the decline in competition increasing its average revenue per user. The company expected its 2024 profit at THB 33,052 million or 13% growth from last year. Thanachart Securities recommends “Buy” at a target price of THB 255.
Airports of Thailand PCL (SET: AOT) is expected to receive direct benefit from tourism with profit projection in 2024 at THB 19,601 THB or 122% growth from the previous year. Thanachart Securities recommends “Buy” at a target price of THB 70.
For BDMS, the hospital has received a continuous stream of foreign patients, pushing its profit forecast to THB 16,115 million, or 12% growth from last year. Thanachart Securities recommends “Buy” at a target price of THB 38.
Central Pattana PCL (SET: CPN) reported strong performance in all of its sectors, the company anticipates its profit at THB 16,359 million, or 8% growth from the previous year. Thanachart Securities recommends “Buy” at a target price of THB 87.
Lastly, Gulf Energy Development PCL (SET: GULF) continues to increase its production capacity, predicting its profit at THB 16,981 million or 14% growth from last year. Thanachart Securities recommends “Buy” at a target price of THB 54.
