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SET Aims for Gains as War Eases, Foreign Funds Expected, CPALL Boosted

SET Aims for Gains as War Eases, Foreign Funds Expected, CPALL Boosted

Post Today•Economy•1d ago

Reader Briefing

Thai stock market (SET) anticipates positive movement, driven by easing geopolitical tensions, potential foreign capital inflow, and domestic economic stimulus. CPALL is highlighted for its potential growth.

  • •The SET Index is expected to trade higher, influenced by a US-Iran ceasefire extension and positive US economic data.
  • •Domestic stimulus projects like 'Thai Helps Thai Plus' are forecast to support the Thai economy from late Q2/69.
  • •Foreign investment is anticipated to return, potentially leading to sector rotation into domestic consumption stocks.
  • •CPALL is recommended for 'Buy' with a target price of 63 baht, as potential business restructuring is unlikely to be approved.

Overview

  • •The stock market yesterday saw the SET Index fluctuate, closing down 1.98 points at 1,568.97 points with 63 billion baht in trading value.
  • •Finansia Sirius Securities analysts forecast the SET Index to trade in a positive range of 1,560-1,580 points today.
  • •The positive outlook is supported by news of the US and Iran agreeing to extend a ceasefire by 60 days.
  • •US Core PCE inflation was slightly lower than expected at +0.2% m-m, +3.3% y-y, not pressuring Fed interest rate direction.
  • •The 'Thai Helps Thai Plus' project is set to begin its first spending next week, bolstering the economy from late Q2/69 and fully in Q3/69.
  • •International capital is expected to flow back into Thailand, with potential sector rotation into domestic/consumption plays in the second half of the year.
  • •Net capital outflow from Thailand is expected to be nearly 10 billion baht due to MSCI rebalancing, affecting stock prices at today's closing.
  • •CPALL is recommended for a 'Buy' rating with a target price of 63 baht, as a shareholder meeting will vote on potentially moving financial services businesses.

Full article content is available on the original source.

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Source: Post Today (Original)

Key Quotes

Finansia Sirius Securities
"Analysis expects SET Index to swing towards positive territory between 1,560-1,580 points, supported by news of US-Iran reaching an agreement to extend the ceasefire by 60 days."
ฝ่ายวิเคราะห์คาด SET Index จะแกว่งตัวค่อนไปในแดนบวกได้ในกรอบ 1,560-1,580 จุด หนุนจากข่าวสหรัฐฯ-อิหร่านบรรลุข้อตกลงขยายเวลาหยุดยิงไปอีก 60 วัน
Finansia Sirius Securities
"The 'Thai Helps Thai Plus' project will begin spending its first baht next week, expected to support the economy from late Q2/69 and fully in Q3/69."
โครงการใช้ช่วยไทยพลัสจะเริ่มใช้จ่ายเงินบาทแรกในสัปดาห์หน้า คาดช่วยประคองเศรษฐกิจตั้งแต่ปลายไตรมาส 2/69 และเต็มที่ในไตรมาส 3/69
Finansia Sirius Securities
"We assess the likelihood of voting against the principle, which would mean CPALL's business remains unchanged and is expected to unlock overhang factors."
เราประเมินว่าโอกาสที่จะโหวตไม่รับหลักการ ซึ่งจะทำให้ธุรกิจของ CPALL ไม่มีการเปลี่ยนแปลงและคาดว่าจะปลดล็อคปัจจัย Overhang ได้

Key Entities

Organization

SETℹ️
The Stock Exchange of Thailand, which is being analyzed for potential gains and fluctuations.
Finansia Sirius Securities(บล.ฟินันเซีย ไซรัส)
The securities firm providing market analysis and stock recommendations.
CPALLℹ️
A company highlighted for potential growth, with a 'Buy' recommendation and a target price, facing a shareholder vote on business structure.
Fedℹ️
The US Federal Reserve, whose interest rate direction is being monitored based on economic data like Core PCE.
BBLℹ️
Bangkok Bank, listed as a notable stock for May.
ITC
Inter Pharma Public Company Limited, listed as a notable stock for May.
SCGP
Siam Cement Group Packaging Public Company Limited, listed as a notable stock for May.
WHAUP
WHA Utilities and Power Public Company Limited, listed as both a notable stock for May and within the FSSIA Portfolio.
BA
Bangkok Airways Public Company Limited, included in the FSSIA Portfolio.
BDMS
Bangkok Dusit Medical Services Public Company Limited, included in the FSSIA Portfolio.
CPF
Charoen Pokphand Foods Public Company Limited, included in the FSSIA Portfolio.
CPN
Central Pattana Public Company Limited, included in the FSSIA Portfolio.
ERW
East-West Restaurant Public Company Limited, included in the FSSIA Portfolio.
GULF
GULF Energy Development Public Company Limited, included in the FSSIA Portfolio.
KTB
Krungthai Bank Public Company Limited, included in the FSSIA Portfolio.
TIDLOR
Mufin Company Public Company Limited (Tid Lor), included in the FSSIA Portfolio.
CPAXT
The subsidiary company of CPALL that will benefit from the 'Thai Helps Thai Plus' project.

Policy

Thai Helps Thai Plus(ไทยช่วยไทยพลัส)
A domestic economic stimulus project set to begin spending next week to support the Thai economy.
Virtual Bank
A proposed business category into which CPALL may integrate its financial services, subject to shareholder approval.

Stat

Core PCEℹ️
A US economic indicator (Personal Consumption Expenditures price index) that came in lower than expected, impacting Federal Reserve interest rate expectations.