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