The total net profit of Thai listed companies rose 50% to 275 billion baht year-on-year in the fourth quarter of 2021, exceeding analysts' forecast, according to Asia Plus Securities (ASPS).
As a result, ASPS is considering upgrading its forecast for listed companies' profit growth this year. The high potential for growth will be an important factor to attract foreign funds to the Thai bourse this year, said analysts from ASPS.
In terms of investment strategy, the brokerage recommends avoiding stocks that will be impacted by external factors and investing in domestic retail stocks such as Siam Makro, CP All and Berli Jucker.
ASPS also expects restaurant stocks to recover this year. Top picks from the group include MK Restaurant Group.
The brokerage also recommends Total Access Communication (DTAC) for tech-backed stocks, Global Power Synergy and Thai Oil for energy stocks and Minor International for tourism-related stocks that are currently starting to pick up thanks to the easing of travel restrictions.
Globlex Securities said the Thai stock market rallied yesterday, spurred by positive sentiment in regional stock markets, rising energy stocks and foreign inflows that continue to enter the Thai bourse.
Foreign investors are attracted by Thai listed companies' performance in 2021, said the brokerage, and the local bourse is less affected by the Russia-Ukraine war.
Kasikorn Securities (KS) said the intensifying tension between Russia and Ukraine will continue to depress investment climate. Investors need to monitor the next round of talks between the two countries that will take place at the Belarus-Poland border in the coming days, said KS.
Two-year bond yields have reportedly exceeded 10-year bond yields, resulting in an inverted yield curve or negative 2-10 spread in which long-term debt instruments have lower yields than short-term debt instruments, signalling that the economy is entering a recession.
Considering the last six interest rate hike cycles since 1977, the S&P 500 will continue to rise to its peak, yielding an average 17%, said the brokerage.
