Capital Nomura Securities

After nearly two years of struggling with a harsh recession caused by the COVID-19, Thailand today (November 1) took a bold step toward reviving its economy after the pandemic. Fully vaccinated tourists from 63 countries, including China, Japan, South Korea, Australia, the US and all nations of the European Union, are eligible to enter the country without quarantine. The night curfew between 11 p.m. and 3 a.m. is also lifted, except in seven highly restricted and controlled provinces (dark-red zone). Furthermore, the Centre for COVID-19 Situation Administration (CCSA) has reclassified popular tourist destinations; Bangkok, Krabi, Phang-nga, and Phuket as special "tourism zones" (blue zones) in preparation for the country's November 1 reopening. Restaurants in four aforementioned provinces are now allowed to sell alcohol until 9 p.m. Analysts anticipate a positive sentiment toward 22 stocks in the tourism, transportation, restaurant, retail, shopping center, industrial estate, and media sectors as Thailand reopens its borders to international visitors. Capital Nomura Securities (CNS) believes that the reopening of the country and the lifting of the curfew will stimulate economic activity and public spending. As a result, stocks in following sectors will benefit; tourism (e.g. SPA, ERW), transportation (e.g. BTS, BEM, AOT), restaurant (e.g. M, ZEN), retail-shopping center (e.g. BJC, CPALL, CPN), industrial estate (e.g. AWC, WHA, AMATA), and media (e.g. VGI, MAJOR). Additionally, CNS recommends stocks where the prices remain discounted from pre-COVID levels. BEM, ERW, BJC, CPN, WHA, MAJOR, and M are Top Pick. Meanwhile, Asia Plus Securities (ASPS) said that as lockdowns be eased and tourists from 63 nations will be allowed to enter Thailand without quarantine after COVID-19 improves, this will have positive sentiment on country plays or restart economy plays (AOT, MINT, CPN, CPALL, CRC, COM7, SPVI, HMPRO, DOHOME, MAJOR, and MTC). In the future, investors have to watch whether country reopening will be safe and efficiently boost the economy. ASPS raised AOT and CPALL as Top Pick.