Political payout: Listed companies to rake in the baht
Listed companies across a swath of sectors are set to cash in big, thanks to the Pheu Thai-led administration’s progressive new policies, Bualuang Securities (BLS) revealed. The brokerage is urging investors to zoom in on mid-cap stocks, particularly in retail, consumer goods, food, finance, construction, transport, tourism, and healthcare.
The launch of Vayupak Fund units has already sent the Stock Exchange of Thailand (SET) skyrocketing by 6% this month. BLS predicts a frenzy of stock speculation, fuelled by the government’s latest policy rollouts. These include a 10,000-baht digital handout, aggressive debt restructuring, and a slew of infrastructure investments, all set to drive the Thai index even higher.
Mid-cap stocks are the golden ticket, says BLS, with government policies poised to deliver hefty gains. The imminent launch of the digital wallet scheme could be particularly lucrative for retail giants like CPALL, CP Axtra (CPAXT), Berli Jucker (BJC), Home Product Center (HMPRO), and Dohome (DOHOME).
But it’s not just retail! The consumer, food, and finance sectors are also poised for a boost. Companies such as Carabao Group (CBG), Osotspa (OSP), Ichitan Group (ICHI), Neo Corporate (NEO), Srinanaporn Marketing (SNNP), KCG Corporation (KCG), MK Restaurant Group (M), After You (AU), Central Plaza Hotel (CENTEL), Krungthai Card (KTC), Muangthai Capital (MTC), and Aeon Thana Sinsap Thailand (AEONTS) are in prime position to reap the benefits.
Government plans to cut electricity tariffs, beef up fuel sources, and set a single price for electric trains are expected to supercharge retail stocks like CPALL, CPAXT, BJC, HMPRO, and DOHOME.
And let’s not forget power players like Gulf Energy Development (GULF), Gunkul Engineering (GUNKUL), B.Grimm Power (BGRIM), and PTT Exploration and Production (PTTEP), all of which stand to gain from short-term government strategies. Transport sector bigwigs such as BTS Group Holdings (BTS) and Bangkok Expressway and Metro (BEM) are also expected to benefit.
Tourism-friendly policies
In the medium term, debt restructuring deals involving financial institutions and asset management companies are likely to give Krungthai Bank (KTB), TMB Thanachart Bank (TTB), KTC, and MTC a welcome boost. Tourism-friendly policies, including eased visa processes and major events, could see boom times for the Asset World Corp (AWC), Erawan Group (ERW), CENTEL, Airports of Thailand (AOT), Asia Aviation (AAV), Bangkok Airways (BA), and media giant Plan B Media (PLANB).
Meanwhile, infrastructure investments covering rail, water, road, air transport, logistics, and water management systems should propel shares of firms like Ch. Karnchang (CK), Sino-Thai Engineering and Construction (STEC), Civil Engineering (CIVIL), Siam Cement (SCC), Siam City Cement (SCCC), SCG Decor (SCGD), Tipco Asphalt (TASCO), SCGJWD Logistics (SJWD), AOT, Asia Network International (ANI), BA, and BTS.
Food and modern agriculture sectors aren’t left out either, Bangkok Post reported. Higher domestic sales and exports could mean big gains for Charoen Pokphand Foods (CPF) and GFPT.
Lastly, the burgeoning medical and wellness hub policy shines the spotlight on Bumrungrad Hospital (BH), Praram 9 Hospital (PR9), and Bangkok Dusit Medical Services (BDMS).
