Petrochemical, energy, exports, technology and high-dividend stocks are all recommended plays following the US election, say analysts.
Asia Plus Securities (ASP) executive vice-president Terdsak Taweethiratham said there will be several sectors that benefit from the US election that investors can consider.
The first sector is petrochemicals and energy, which will likely be supported by both the Republican and Democratic parties. Republicans favour a policy of fossil fuel consumption, while the Democrats plan to implement a US$2-trillion stimulus package partly spent on infrastructure supporting this sector, causing increased energy consumption and inflation.
The analyst proposes buying Siam Cement Group (SCG), Indorama Ventures (IVL), PTT Global Chemical (PTTGC) and PTT.
President Donald Trump's international trade policy pressuring China exports has already helped move manufacturing to Thailand.
The Democratic Party may seek to join the Comprehensive and Progressive Agreement for Trans-Pacific Partnership to stimulate trade with Asia.
ASP recommends Thai Union Group (TU), Charoen Pokphand Foods (CPF) and SVI in the trade sector.
High-dividend stocks are also recommended for investment because of continued stimulus policies on both sides of the aisle. Many countries are also seeing a resurgence in Covid-19 infections, pressuring governments to keep interest rates low.
Tourism in Thailand has not yet recovered. This makes a relaxed monetary policy still necessary. The ASP research department estimates the central bank will maintain interest rates at a low level for at least two years, while stocks will benefit as investors search for assets with higher returns.
For high-dividend stocks, ASP recommends Dynasty Ceramic (DCC), AP Thailand (AP) and InTouch Holdings (INTUCH).
Bualuang Securities (BLS) said many tech stocks are accelerating rapidly amid stimulus factors like Covid-19.
In Thailand, there is a technology group stock that is on an upward trajectory. BLS Research department recommends five Thai tech firms: I&I Group (IIG), Humanica (HUMAN), NETBAY, Business Online (BOL) and Yggdrazil Group (YGG).