Survey: SET earnings increasing 40%
Earnings per share on the Thai stock market will increase 40% from last year, in line with listed firms' net profit recovery and supported by global governments' quantitative easing programmes and inbound fund flow, according to a survey by the Investment Analysts Association (IAA).
The survey of 23 respondents including securities analysts and fund managers who are members of the IAA, showed respondents were most concerned with the resurgence of infections and turbulent domestic politics. The survey still predicted the Stock Exchange of Thailand (SET) Index would rise to 1,559 points by the end of the year.
IAA secretary-general Sombat Narawutthichai said the association has completed its first survey of 23 respondents regarding 2021 first quarter investment direction.
The report concluded Thai stocks will fare better this year than the last, and forecast the SET Index reaching 1,559 points by the end of the year, up from 1,449 points from last year, with a high of 1,631 and a low of 1,338.
Analysts and fund managers also estimated SET's EPS this year will increase by 77.5 baht per share, or up 40% from last year's EPS of 55 baht per share.
According to those surveyed, he said the most worrying factors for the first quarter of 2021 are the outbreak and domestic politics shaking government stability in the medium- and long-term, hampering the government's ability to launch a new stimulus package.
Respondents said factors supporting investment sentiment are measures to help people suffering from the outbreak, fund inflows, listed-firms' earnings growth, the overall global economic recovery and low interest rates.
Mr Sombat said government policies poised to most impact economic growth are the stimulus measures, spending on infrastructure and measures to support businesses.
Mr Sombat said he recommends investors allocate portfolios for the first quarter at 12.17% cash and short-term deposits, 16.30% fixed income, 28.43% Thai stocks, 28.39% global stock and foreign investment funds, 7.85% gold and 6.85% real estate investment trusts.
The IAA survey also showed analysts' consensus for the top five stocks recommended for the first quarter: Advanced Info Service (ADVANC), Bangkok Dusit Medical Services (BDMS), CP ALL (CPALL), Kasikornbank (KBANK) and PTT Global Chemical (PTTGC).