KASIKORNBANK predicts 1,600 Thai stocks will drop amid sharp US inflation Stimulate the Fed to speed up interest rates

Kasikorn Securities stated that After the US inflation figures in May jumped to 8.6%, higher than expected. will cause the market to return to worry about interest And it doesn’t close the chance that the Fed could go up 0.75%. This should cause US Bond Yields in the short term to continue rising, becoming a positive sentiment for BLA stocks, but negative for growth stocks, high value stocks, and electronics.

At the same time, it is expected to strengthen the dollar. As a result, the baht depreciated, becoming a positive factor for export stocks. KS recommends focusing on Food Export Group ASIAN, CPF, GFPT, TU As for the impact on the Thai stock market, the SET Index is likely to recede below 1,600 points (expecting key support of the SET Index at 1,585 points).

While the Thai interest rate may rise in 3Q22, it is considered a positive sentiment towards big bank stocks BBL, KBANK, SCB, etc. At the same time, we have to wait to follow up on the meeting of the Prof. , hotel, airline

KS maintains its recommendation to gradually accumulate for medium-term results 1.) Financial group recommends mortgage loans such as MTC, SAWAD 2.) Power plants group recommends BGRIM, GPSC 3.) ICT group recommends TRUE, DTAC

As for the sector, stocks that are recommended to slow down to invest in this period are 1.) High Valuation or High PER group 2.) Electronics, automotive, petrochemical group 3.) Retail group

Top pick stocks

– DTAC (basic price Bt57.50) remains confident that the merger of TRUE with DTAC will occur this year. A weaker share price would be a good buy opportunity. DTAC remains our top pick due to 1.) forecast high dividend yield, 2.) attractive EV/EBITDA, and 3.) Swap Ratio. helpful

Economic issues worth following

– 13 Jun: British industrial production report for April and track British trade balance for April.

– Jun 14: OPEC monthly report, NFIB US Small Business Confidence Index (May), US Core CPI (May). Market expected 0.6%MoM , 8.9%YoY

– Jun 15: China Fixed Asset Investment (Year Year) May Market Expected 7%YoY, Core Retail Sales (Month-Month) (May) Market expects 0.8% MoM

– Jun 16: Federal Reserve (Fed) meeting expected to raise interest rates by 0.50%, China house price index (Y/Y) month (May), number of building permits in the US month ( May) The market is expected to be 1.81 million units.

– June 17: Consumer Price Index (CPI) report (year on year) of Europe (May) was at 7.5%YoY, down from 8.1% in April, industrial production index. (Month-Month) (May) of the United States