Securities analysts are gearing up to cut forecasts for earnings per share (EPS) of SET-listed companies this year after estimating that listed companies will report disappointing net profits in the second quarter.
Maybank Kim Eng Securities Thailand (MBKET), the country's largest stock broker in terms of market share, is set to revise down its 2017 EPS forecast, assuming that a number of large companies will post lower-than-expected net profit for the second quarter, said Sukit Udomsirikul, managing director for the research department.
Based on company's earnings preview for the second quarter, MBKET found that the energy, petrochemical, construction and retail sectors would be among the worst performers during the April-to-June quarter.
The broker also found that large companies, including Charoen Pokphand Foods Plc, CP All Plc and Thai Union Group Plc would show softer-than-expected earnings for the second quarter.
"So it's possible that analysts will revise down EPS of SET-listed companies again after the second quarter's earnings season ends," said Mr Sukit.
MBKET forecasts SET-listed EPS of 101.80, down from 102.40 predicted earlier, in response to expectations of softer crude oil prices.
The broker advises investors to hold cash at 50% this week.
Mr Sukit said MBKET also slashed its SET index forecast to 1,600 points in the second half from 1,650 previously.
The benchmark index yesterday fell 0.2% to 1,569.24 in turnover worth 39.6 billion baht. Thai shares have gained 1.7% year-to-date.
Recently, Kasikornsorn Securities said it would trim its EPS estimate for this year if listed companies' earnings for the three months to June turn out to be weaker than expected.
Nalinrat Kittikampolrat, research manager at Asia Plus Securities, estimated energy companies would record oil inventory losses for the second quarter.
She said crude oil prices are expected to hover around US$40-45 (1,364-1,536 baht) a barrel during the second and third quarters.
Although downside is limited, oil price's upside is also capped due to oversupply, she said.
Sarawut Taechowchawalit, research manager at RHB Securities, said retail stocks were under selling pressure yesterday on the assumption that the sector would post lower-than-expected earnings in the second quarter.
CPALL led in turnover yesterday, falling 1.50 baht to close the market at 60.50 in trade worth 2.87 billion baht. Berli Jucker Plc lost 1.25 baht to close at 45.50 in trade worth 222 million.