The Ministry of Finance stated that the Thai stock market is in a good direction as foreign investors flooded into the market, causing an appreciation in Thai baht. SET Index has the return of 12.7% in November, best in the region. The analyst suggested focusing on exports-related stocks such as STGT, CPF, TU, KCE and SCGP to gain positive sentiment after signing the RCEP agreement.
Asia Plus Securities (ASP) stated the announcement of Thai GDP in 3Q20 contracted by 6.4% has beaten the market forecast for a contraction of 8-9%, expecting an upward trend for the market due to a benefit from the government’s stimulus programs “Khon La Khrueng” (Let’s Go Halves) and “Shop Dee Mee Kuen” (Shop and Payback). Therefore estimating 2020 GDP to shrink by only 7-8% and will recover next year at a level of 4.1%, pushing the market index to 1,450 points.
In addition, analyst saw a positive momentum for Thai stock market after signing the The Regional Comprehensive Economic Partnership (RCEP) agreement, expecting a better performance for exports next year. ASP recommended to focus on exports-related stocks such as Stri Trang Gloves (Thailand) Public Company Limited (STGT), Charoen Pokphand Foods Public Company Limited (CPF), Thai Union Group Public Company Limited (TU), KCE Electronics Public Company Limited (KCE), Taokaenoi Food & Marketing Public Company Limited (TKN), SCG Packaging Public Company Limited (SCGP), Thaifoods Group Public Company Limited (TFG) and Sappe Public Company Limited (SAPPE).