Kasikorn Securities expects the MPC to raise interest rates by another 0.25%, supporting big bank stocks BBL-SCB.

Kasikorn Securities said it still has a positive view SET index Continuing into the first half of 2023, the index is expected to turn up until before the Fed meeting in mid-December, estimating resistance of 1,666 points and 1,700 points for the rest of the year.

And if the index shrinks down to look the same, that is, it is expected that it will not make a new low or will not fall 1,550 points, assessing the important support level at 1,605 points as the support line first. For reasons of the fundamentals of the Thai economy and the profits of listed companies which are still seeing growth

while next week has to wait to followMPC meeting As of 30 November, KBANK expects the policy interest rate at the end of 2022 to be 1.25% and at the end of 2023, the policy rate is expected to be 1.75-2%. such as BBL, SCB etc. which benefit from rising interest rates As for the best choices in the banking sector, we recommend KTB and TTB.

At the same time, the dollar trend is expected to depreciate both as US inflation has already peaked and the latest Fed Minutes point to a relaxed mood. We look positively at assets with an opposite correlation to the Dollar, such as gold, as well as the baht, the trend is appreciating the dollar, the Thai economy showing signs of recovery from the tourism sector, and etc.

Still optimistic on the direction of Fund Flow and stocks benefit. Kasikorn Thai trading room Expect the baht value at the end of 2012-2013 down to 35.25 baht and 33.5 -34.0 baht / dollar, respectively. The baht tends to appreciatetogether with the power equipment group with a lot of USD debt, such as EGCO, BGRIM, etc., but it will remove the export group.

Recommended stocks to invest in

– Domestic Playgroups such as building contractors such as CK

– Media groups such as PLANB

– Groups whose profit forecast grew in 4Q22 YoY and QoQ and next year grew more than 15%, such as SNNP, PTG, CRC, PLANB, EGCO, GPSC, HENG and BE8.

and slowing investment, such as food export groups Except for the export of animal feed, petrochemical group

Top choice

– PYLON (base price 5.52 baht)

Management revealed record backlog of Bt1.59bn in 4Q22, 50% higher than our estimate, year-end 2023 target price increased 21.05% to 5.52 baht, upgrading Outperform recommendation, with share price recovering slower than the earnings recovery momentum.

– RBF (base price 12.30 baht)

4Q22 outlook will improve QoQ and YoY, driven by wheat prices returning to normal. High sales during the long holiday season and the current level of tourists, which is around 50,000 people a day This is expected to boost domestic food and drink consumption. RBF believes that GPM has reached its lowest point in 3Q22.

Its share price is down 45.8% YTD, compared to a 1.2% decline in the SET and currently trades on a 2012/2024 PER of 48.7x/37.9x/32.5x.

– BGRIM (base price 61.25 baht)

Pool gas price tends to swing down. supported by the appreciation of the baht Recently, the baht has come close to reaching 36 baht again, with the baht appreciating every baht / dollar, which is expected to add a positive side to BGRIM’s 2023 net profit forecast of 9.9 %.

As for Ft, we are waiting for a public hearing between 14 and 27 November. We still believe we will see progress. If it is up, it will be positive for BGRIM as the current rate does not reflect Gas prices, which will make BGRIM’s earnings recover faster.

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