Time for the Economy to Move Forward
Today, it is anticipated that the Stock Exchange of Thailand (SET) will experience a secure period, ranging from 1535-1560, following positive political developments. This is expected to generate optimistic speculation and drive economic stimulus policies in the coming months. Thailand Focus, in particular, is projected to instill greater confidence in investment opportunities. For today’s stock focus, it is recommended to consider accumulating shares of “KBANK,” with a particular emphasis on stocks associated with the domestic economy.
Yesterday, the Thai stock market witnessed a significant surge in response to the easing of lockdown measures. This came as Mr. Srettha Thavisin, a candidate from the Pheu Thai Party, secured 482 votes of approval from the House of Representatives, propelling him to the position of Thailand’s Prime Minister. This positive outcome has fostered a favorable sentiment among investors, as the new government is poised to drive the nation’s economy towards recovery in the near future.
Accelerating Economic Stimulus Policies
With the government now successfully established, the focus must shift towards expediting the implementation of various economic stimulus policies. The Pheu Thai Party has campaigned for a range of intriguing measures, including a 10,000 baht digital wallet, a 20 baht electric train network, a minimum wage of 600 baht, a bachelor’s wage of 25,000 baht, universal health insurance, a target of 3 trillion baht in tourism income by 2027, and tripling farmer’s income by the same year. The realization of these policies is expected to markedly improve the quality of life, particularly among the underserved demographics. As a result, this positive sentiment is likely to facilitate further progress for the SET, with sectors such as retail, banking, finance, and telecommunications continuing to serve as vital drivers.
Thailand Focus Event to Encourage Foreign Investment
This week, from August 23-25, the Thailand Focus event will be taking place. This event is anticipated to foster increased interest among foreign investors towards Thai stocks. Historical data from the past 5 years demonstrates that the SET has consistently experienced an average increase of +1.07% during the Thailand Focus event.
Daily Choice: KBANK
Strategic target price (THB): 150.00
Despite recent negative reactions due to weak asset quality, KBANK presents an intriguing opportunity. With the establishment of the new government, it is expected that various policies to stimulate the economy will be implemented, resulting in a generally optimistic outlook, especially for the grassroots population. In addition, KBANK currently trades at a speculative level, with a PBV of only 0.57x.
Combined with valuation, these factors position KBANK as an attractive prospect.
Photo of the Day
Historical statistics indicate that the SET tends to trend positively during the Thailand Focus event.
Eyes Forward
- August 23: US and Eurozone Manufacturing and Services PMI, US new home sales, crude stocks, Thailand Focus (August 23-25)
- August 24: US weekly jobless claims, US durable goods orders
- August 25: Chairman’s Speech at the Meeting Jackson Hole (Aug. 24-26)
Written by Wichit Arayaphisit, Fundamental Securities Investment Analyst #44799, Wijit.A@liberator.co.th
It’s time for the economy to move on.
Today, the SET is expected to “secure” during 1535-1560, with a positive response after the political movement. And positive speculation to drive economic stimulus policies in the next period, together with the Thailand Focus, which is expected to give more confidence in investment. Today, focusing on stocks based on the domestic economy, recommends accumulating “KBANK”.
Yesterday, the Thai stock market rose significantly in response to the unlocking of the city. By Mr. Srettha Thavisin, the candidate of the Pheu Thai Party Received 482 votes of approval from the House of Representatives (330 MPs and 152 Senators), making him the prime minister of Thailand 30. This is positive psychology for the SET The new government ready to move forward to drive Thailand’s economy to recovery in the next period.
What is important now, after successfully establishing the government, is to speed up the campaign for various economic stimulus policies. which the Pheu Thai Party has campaigned for There are many interesting policies such as a 10,000 baht digital wallet, a 20 baht electric train along the line, a minimum wage of 600 baht, a bachelor’s wage of 25,000 baht, universal health insurance, boosting tourism income in 2027 to 3 trillion baht, including wanting to Increase a farmer’s income 3 times by 2027, if these measures come true it is expected to improve the quality of life Especially in the grassroots group, who are facing a lot of problems. Therefore, this is positive sentiment for the progress of the SET in the next period, with domestic dramas (retail, banking, finance, telecommunications) still being a key driver.
In addition, this week the Thailand Focus event will be held on August 23-25, which is expected to encourage foreign investors to have the opportunity to bring more interest in Thai stocks. According to statistics in the last 5 years, the SET was found to have increased with an average of +1.07% during the Thailand Focus event.
Daily Choice : KBANK
Strategic target price (THB) 150.00
Share prices have reacted negatively to weak asset quality. However, we expect after the establishment of the government It is expected that there will be more policies to stimulate the economy. generally positive especially in the grassroots group
Combined with Valuation, it currently only trades at 0.57x PBV, which is a speculative level.
Photo of the day
Statistics indicate that the SET usually moves up during the Thailand Focus event.
Eyes Forward
August 23 US and Eurozone Manufacturing and Services PMI,
US new home sales, crude stocks
US Week, Thailand Focus (August 23-25)
24 August US weekly jobless claims,
US durable goods orders
August 25th Chairman’s Speech at the Meeting
Jackson Hole (Aug. 24-26)
Wichit Arayaphisit
Fundamental Securities Investment Analyst #44799
Wijit.A@liberator.co.th
#LIB #Daily #Strategy #Guide #August
