ท่านสามารถอ่านและดาวน์โหลดเอกสารได้จาก https://res.innovestxonline.com/tc3add4edb4c549a8cf21c2af06a12810/THA/document/todayproductthai Continue to move up if 1410 holds |
|---|
Market today | The SET may slow down after the FOMC minutes suggested it was necessary to keep interest rate higher for longer, until there is clear sign of a slowdown in inflation. Follow at supports of 1418 and 1410. If these points hold, it is a good signal for recovery with resistances at 1430 and 1437. | Today’s highlights | • The Cabinet has approved in principle the draft ministerial regulation under tax measures to promote investment for Thailand's sustainability. This includes making purchases of TESG funds tax-exempt for up to 30% of income not exceeding Bt100,000. This exemption will be effective from Nov 21, 2023, to Dec 31, 2032
• The Prime Minister has instructed the Minister of Labour to bring the matter of raising the minimum wage to the Cabinet for consideration within the next two weeks.
• The SET is intensifying its scrutiny of short-selling. It plans to set up a special task force with representatives from NASDAQ and KRX, and has ordered brokers to submit customer short-selling data within 15 days.
• FOMC minutes from the Oct 31 meeting suggest the FOMC will proceed cautiously with monetary policy and may raise interest rates if inflation does not meet target.
• Investors are monitoring the oil spill in the Gulf of Mexico, as well as waiting for the official US crude oil inventory report from the EIA. The API reported an increase in crude oil stock of 9.1mn bbl last week, while gasoline stock fell by 1.79mn bbl and stock of heating oil and diesel decreased by 3.5mn bbl.
• South Korea’s exports in Oct increased by 5.1%YoY, marking the first rise in 13 months. This growth was driven by an increase in car exports and signals a recovery in the chip industry. | Strategy today | The SET is expected to see a steady recovery, backed by positive sentiment from an expected Bt10bn in funds flowing into TESG by the end of the year. In addition, US manufacturing figures are expected to be strong although there is some indication of a slowdown. Our strategy is selective buy. | Trading today | Weekly portfolio: Although the Thai stock market is still facing high volatility, in the short term the SET may recover, though upside is limited. We recommend “selective buy” in themes with specific drivers:
1) Big-cap stocks in SET50 expected to be selected as investment targets for the TESG fund being set up for long-term stimulus. We select stocks in SETESG with factors of interest: 1) ESG Rating of “AAA” or “AA” and 2) prices have declined more than the SET YTD – SCGP, OR, CPALL, BEM, GULF, CRC and HMPRO
2) Earnings plays whose 4Q23 earnings are expected to grow YoY, making it the year’s best quarter – ERW, AOT and AP.
In the medium term we recommend being cautious on stocks that are expected to be affected by El Nino, which will erode purchasing power in the agricultural sector: Finance (MTC, SAWAD), Automotive (SAT, STANLY), Food & Agriculture (CPF GFPT and GFPT) and Beverages (CBG has high sugar cost). | Daily top picks | CPAXT: Sales volume in 4Q23TD appears to be growing more than others in the sector. 4Q23 is expected to be the best quarter of this year, growing YoY and QoQ, as there are short-term catalysts: it is in SETESG index with an AAA rating and will benefit from new government stimulus packages.
BDMS: It has been put in the SETESG index with an AA rating. 4Q23 core profit is expected to grow YoY, giving 2023 core profit growth of 12%, followed by 2024 growth in core profit of 8%, backed by growing foreign patients, rising revenue from Centers of Excellence and better asset utilization. | Today’s reports | Petrochemicals – Mixed product spread
CPAXT – Boosted by better 4Q23F and 2024F | | | Click here to read and/or download file https://res.innovestxonline.com/t326025af9e7fb460942d9a8f7b5f49a2/ENG/document/todayproduct |
|
