BBL, KBANK, BEM, CPN, MAJOR, SPA, ORI, CRC, DOHOME, HMPRO, COM7, SPVI, BJC, and CPAL were selected by analysts as reopening stocks to benefit from new fiscal stimulus measures starting in 4Q21. Analysts confirmed an upward trend in those stocks in October, following the alleviation of negative factors.
KGI Securities (Thailand) (KGI) forecasts that the SET Index will continue to face turbulence from global macroeconomic uncertainty, but that the price downside from current levels will be limited. KGI also believes that a little macroeconomic clarity will emerge by mid-month, triggering a stronger market in the second half, and thus recommends investors to accumulate into the current market volatility.
KGI’s monthly portfolio is concentrated on large banks, Thai re-opening trades, and select mid-caps with strong earnings prospects: Bangkok Bank (BBL), Kasikornbank (KBANK), Bangkok Expressway and Metro (BEM), Central Pattana (CPN), Major Cineplex Group (MAJOR), Siam Wellness Group (SPA), and Origin Property (ORI).
Asia Plus Securities (ASPS) stated that the government is considering additional fiscal stimulus measures in 4Q21 and likely 1Q22, including the Shop Dee Mee Kuen (Shop and payback), tax deduction and the extension of the Kon La Krueng (Half-Half) and Ying Chai Ying Dai programs (Spend More, Gain More). ASPS believes that progress on fiscal stimulus measures will benefit commerce and department store stocks such as Central Retail Corporation (CRC), Central Pattana (CPN), DOHOME, Home Product Center (HMRO), COM7, SPVI, Berli Jucker (BJC), and CP All (CPALL). CRC and DOHOME are among the top picks.