CGSI Raises Thailand Stock ⁤Market Index ‌Target‌ to 1,480 Points

CGS International⁣ Securities (Thailand) (CGSI)​ has raised‌ its target⁤ for the Thailand Stock Market Index (SET Index) to 1,480 points⁢ from the previous 1,420 points, citing support from the trend of faster interest rate cuts in Thailand and ‌the United ​States.

The CGSI Analysis Department stated that the ⁣US ⁤Federal ⁣Reserve’s (Fed) 50bp interest rate cut on September 18, combined with the expected interest rate cuts in the next two meetings, will lead to increased capital flow into the Thai​ stock market. Additionally, the weakening Thai economy and strengthening baht are expected​ to ‌prompt the Bank of Thailand (BoT) to reduce the policy ⁣interest rate by 25bp to 2.25%⁣ at the meeting on October⁤ 16, 2024.

This​ development is expected to ‌benefit⁢ large cap stocks, particularly ‍those in the banking and‌ consumer groups. As a result, KBANK ⁢and CPN stocks ‍have been added to the list of top pick stocks. SIRI stock has also been added⁤ to the list due to its growth potential.

However, the​ strengthening baht may negatively impact entrepreneurs in⁣ the export, electronics, and ​food and drink groups.

CGSI’s Analysis Department believes that the recovery of the Thai ⁤economy in 4Q24 may be slower than expected due to the postponement‌ of Phase 2 of the government’s digital wallet project. Nevertheless, ‍the trend towards lower interest rates in Thailand and⁤ the‌ United States, combined with the strengthening baht,‍ has⁤ led to an increase in the​ SET index target ‍to 1,480 points,⁣ equivalent to a P/E of 16 times in 2025.

The SET index target ​for the end of 2025 is 1,630 points, equivalent to a P/E ​of 16 ⁤times in 2026.

The list of ‍top pick ‌stocks includes AMATA, BBL, BCH, CBG,‌ CPALL, CPN, CRC,​ KBANK, KLINIQ,⁢ PTTEP, ​and SIRI.

By InfoQuest ⁢News Agency

Tags: ​CGSI,⁣ Thai stocks