Thai Stocks Expected to Recover Following FED Signals and Market Rebound

Krungsri Securities assesses that Thai stocks will today recover from the resistance level of 1,380 points, following the direction of the adjacent stock market rebound. Response to the Fed keeping interest rates at 5.5% as expected and sending signals to cut interest rates 3 times this year, causing bond yields to weaken. which is positive for investment

Date: March 21, 2024 Krungsri Securities Company Yesterday’s stock market report, the SET Index fell 9 points (-0.67%) to close at 1,373 points. Foreign fund flows continued to weigh on Large Cap stocks, particularly stocks with specific negative factors such as SCC, PTT and stocks in the retail sector.

Today’s stock market trend estimates that the SET has recovered from the resistance level of 1,380 points following the direction of the adjacent stock market which has rebounded in response to the FED keeping interest rates at 5.5% and Dot Plot still state that they will cut interest rates. 3 times, 0.25% each, for a total of 0.75% this year, causing the US Bond Yield to weaken, which is positive for investment direction However, crude oil prices will weaken due to demand concerns putting pressure on the index to weaken.

For today’s important factors 1. The Federal Reserve (FED) has decided to maintain the policy interest rate at 5.25-5.5% as expected by the market: The Federal Reserve Monetary Policy Committee (FOMC) has decided to maintain the policy interest rate at 5.25-5.50%. rates for the fifth time in a row, bringing current US interest rates to their highest level in 23 years. However, the issue was as expected by most markets.

2.FED Dot Plot indicates that the Fed will cut interest rates 3 times this year as usual: Fed officials’ policy interest rate forecasts (Dot Plot) are still indicative. It will cut interest rates 3 times this year, or a total interest rate cut of 0.75%, unchanged from the original Dot Plot in December, but next year will signal 3 interest rate cuts, down from expectation original of 4 time interest breaks. , while in 2026 the signal will be cut interest rates 3 times, as the previous forecast.

3. The FED has a positive view of the economic direction and has raised its GDP forecast for this year and the next two years: The FED has raised its forecast for US GDP growth to 2.1%, 2.0% and 2.0% in 2024. , Previously expected to expand only 1.4%, 1.8% and 1.9%, respectively, the long-term economic expansion trend is 1.8%.

Investment strategy recommending PSC, BGRIM, GULF, MTC, SAWAD on the benefit of weakening US bond yields.
STA, NER, TEGH, TRUBB rubber prices stable at high levels STEC, CK, GLOBAL, DOHOME expect parliament to pass draft fiscal year 2024 bill this week.

Today’s recommended stock: MINT (closes at 33.25 Buy / Target 42 baht) MINT, the cheapest hotel stock in the group, reflected through a low EV / EBITDA of only 8 times, compared to the group average of 13 times, the profit trend is in an uptrend mode, according to the number of tourists and the debt reduction plan

BBIK (closes at 101.5 Buy / Target 120 baht) has the clearest profit trend in technology Group There are various factors supporting growth: 1) acquisition of a 30% stake in Innoviz 2) having a full year of tax benefits from Vulcan 3) get additional projects for Orbit and 4) expand the global market with a better overall picture. due to signs of demand recovery

#Thai #stocks #regain #resistance #level #points #response #Feds #signal #cut #interest #rates #times #year