Move Forward Party policies to boost retail, banking, and tourism stocks

The new coalition government led by the Move Forward Party is expected to have a positive impact on retail, banking, and tourism stocks, as per analysts. The party’s policies aim to enhance the economy’s efficiency by reducing monopolies and increasing welfare for all, says Asia Plus Securities (ASPS). The sectors likely to benefit from these policies include retail, tourism, transport, electronics, banking, and hospitals. However, hotel, restaurant, energy, leasing, and construction sectors may not fare as well under the party’s policy direction.

“Sectors that should benefit from the policies of the Move Forward Party are retail, tourism, transport, electronics, banking, and hospitals,” stated ASPS, with beneficiaries including Central Pattana (CPN), Home Product Center (HMPRO), COM 7, Srinanaporn Marketing (SNNP), KCE Electronics (KCE), Nex Point (NEX), Krungthai Bank (KTB), and Kasikornbank (KBANK).

On the other hand, power conglomerates such as Gunkul Engineering (GUNKUL), Gulf Energy Development (GULF), B.Grimm Power (BGRIM), and Global Power Synergy (GPSC) are likely to be negatively affected, according to ASPS.

The Move Forward Party’s policies focusing on welfare, increasing the minimum wage, and supporting small and medium-sized enterprises (SMEs) should boost people’s purchasing power and improve the economy, according to Krungsri Capital Securities. Stocks poised to gain from this policy include Bangkok Bank (BBL), ADVANC, Central Retail Corporation (CRC), Srisawad Corporation (SAWAD), Siam Global House (GLOBAL), Osotspa (OSP), MC Group (MC), TOA Paint (Thailand) (TOA), Ichiton Group (ICHI), Aeon Thana Sinsap (AEONTS), and KBANK, reports Bangkok Post.

Yuanta Securities recommends domestic plays in retail, finance, and food and beverage sectors for investors as the tourism sector experiences a strong recovery and the new government is set to announce stimulus policies. Top picks include KBANK, BBL, HMPRO, ICHI, Srisawad Capital (SCAP), and Haad Thip (HTC). “Stocks in these sectors are likely to face minimal risks from external economic uncertainties,” noted Yuanta.