Global stocks rally on Iran deal hopes, Thai bonds face yield rise; A+ picks city stocks

MGR Online•Economy•23d ago

Reader Briefing

Asia Plus Securities forecasts global stock market volatility due to Middle East conflict, inflation, and U.S. tariffs, while anticipating a shift towards defensive and dividend-paying stocks in Thailand, with BBL, BLA, and GULF identified as prime picks.

•Global stock markets face high volatility driven by Middle East tensions, rising global inflation, and new US tariffs.
•Thai bond yields are expected to increase following a 400 billion Baht government loan decree.
•Foreign fund inflows into the Thai stock market remain robust, contrasting with regional trends.
•Asia Plus Securities recommends a 'Fund Flow Rotation' strategy, favoring dividend stocks and defensive plays.

Overview

•Asia Plus Securities assesses the investment market landscape.
•Global stock markets are experiencing increased volatility due to three primary factors.
•Heightened tensions in the Middle East, involving new clashes between the US and Iran, are a key driver.
•Brent crude oil prices rose from $92 to $97 per barrel, but have since pulled back.
•Global inflation is on the rise, with European inflation in May increasing by +3.2% YoY.
•The European Central Bank (ECB) is expected to raise interest rates by 0.25% on June 11.
•The US is preparing to impose new tariffs on imports from 60 trading partner countries, including Thailand.
•The upcoming IPO of SPACEX, led by Elon Musk, is anticipated to absorb significant market liquidity.
•SPACEX is scheduled to begin trading on June 12.
•Foreign funds are expected to withdraw liquidity from risk assets and technology stocks.
•The Thai stock market has seen cumulative foreign fund inflows of over $933.3 million year-to-date.
•A weakening US dollar, due to expected interest rate hikes by the ECB and BOJ, is strengthening the Thai Baht and attracting investment.
•Thailand faces challenges from potential inflation spikes and the negative impact of US tariffs.
•Asia Plus Securities predicts a 'Fund Flow Rotation' in the global market during June.
•The strategy involves shifting from dividend-lacking Growth stocks to stable assets with higher returns.
•Recommended stocks for a defensive portfolio include BDMS, BH, BGRIM, and GULF.
•Recommended dividend stocks include BBL, KTB, KBANK, SCB, and ADVANC.
•Stocks benefiting from high bond yields are BLA and TLI.
•BBL, BLA, and GULF are identified as daily 'Prime Picks'.

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Key Entities

Organization

Asia Plus Securities(บล.เอเซีย พลัส)

A securities company providing analysis on global and Thai investment markets.

WHA Corporation(WHA)

A recommended 'opening city' stock in Thailand.

MTC Corporation(MTC)

A recommended 'opening city' stock in Thailand.

CPN (Central Pattana)(CPN)

A recommended 'opening city' stock in Thailand.

European Central Bank(ECB)ℹ️

The central bank of the Eurozone, with expected interest rate adjustments.

Bank of Japan(BOJ)ℹ️

The central bank of Japan, with expected interest rate adjustments.

SpaceX(SPACEX)ℹ️

A company planning a historical IPO estimated to be worth $1.75 trillion.

Tesla(TESLA)ℹ️

An electric vehicle and clean energy company whose valuation is surpassed by SPACEX's IPO valuation.

Broadcom(BROADCOM)ℹ️

A technology company whose stock is performing negatively despite strong AI chip sales.

BBL (Bangkok Bank)(BBL)

A prime pick stock recommended for its dividend potential.

BLA (Bangkok Life Assurance)(BLA)

A recommended stock that benefits from high bond yields.

GULF Energy Development(GULF)

A prime stock pick recommended for its defensive qualities.

KTB (Krungthai Bank)(KTB)

A recommended stock for high dividend potential.

KBANK (Kasikornbank)(KBANK)

A recommended stock for high dividend potential.

SCB (Siam Commercial Bank)(SCB)

A recommended stock for high dividend potential.

ADVANC (Advanced Info Service)(ADVANC)

A recommended stock for high dividend potential.

TLI (Thai Life Insurance)(TLI)

A recommended stock that benefits from high bond yields.

BDMS (Bangkok Dusit Medical Services)(BDMS)

A recommended stock for a defensive portfolio.

BH (Bumrungrad International Hospital)(BH)

A recommended stock for a defensive portfolio.

BGRIM (B.Grimm Power)(BGRIM)

A recommended stock for a defensive portfolio.

Place

United States(สหรัฐฯ)ℹ️

A major global economic power discussing trade and geopolitical matters.

Iran(อิหร่าน)ℹ️

A nation involved in geopolitical tensions with the United States, impacting oil prices.

Kuwait(คูเวต)ℹ️

A country drawn into the Middle East conflict between the US and Iran.

Bahrain(บาห์เรน)ℹ️

A country involved in the escalating Middle East conflict.

Person

Elon Muskℹ️

The leader of SpaceX, overseeing its upcoming IPO.

Group

Magnificent 7(Magificent 7)

A group of large-cap technology stocks that have seen significant price drops.