Asia Plus Securities (ASPS) expected the SET Index at the end of this year to stand at 1,670 points as high level of excess liquidity has a positive impact on Thai market and economy is recovering despite experiencing Covid-19’s third wave. Impacts from the fresh outbreak will be limited to some sectors and will not be as severe as last year.
Without lockdowns and curfew, ASPS believed several Covid-19 control measures that have been imposed against a recent resurgence of pandemic will have less effect on economic activities unlike in 2Q20. Also, there will be limited impact on international trade. However, GDP growth forecast are revised down to 2% from 2.6% amid current widespread outbreak of coronavirus.
2021 EPS forecast of ฿70.2 has limited downside, but there is upside from rising commodity prices and banks’ strong earnings.
Thai market still enjoys fund inflow as USD weakens rapidly. Fund inflow is expected from now on, boosting SET Index amid Covid-19, and high global liquidity has spilled over.
For the investment strategy in 2Q21, ASPS recommended investing in stocks with great valuation and will benefit if SET applies new Free Float Adjusted Market Cap like BBL, BDMS, STEC, SCC, SPALI and BLA.