Globlex Securities Company Ltd (GBS) recommends buying stocks that will benefit from the legalisation of cannabis, which is due to happen on Thursday.
Wilasinee Boonmasungsong, GBS research director, believes businesses that use the plant will benefit from the change.
Top picks include an energy company with a cannabis facility, Gunkul Engineering (GUNKUL), the agricultural machinery company K. W. Metal Work (KWM), the media and hemp product manufacturer RS Group (RS), and Boutique Corporation (BC), the real estate developer that has a cannabis research subsidiary.
Ms Wilasinee also recommended the biopharmaceutical firm Inter Pharma (IP), the hemp-related product manufacturer DOD Biotech (DOD), and the food development and research company R&B Food Supply (RBF).
She said the Thai stock market is likely to remain volatile this week amid concerns over interest rate hikes after better than expected American employment numbers suggested the US Federal Reserve would continue raising interest rates. Another factor to consider is the rising price of West Texas Intermediate crude oil supporting energy stocks.
Ms Wilasinee expects the Stock Exchange of Thailand index to bounce between 1,630-1,665 points.
She suggested investors pay attention to other potential factors, such as the Thai Chamber of Commerce's Consumer Confidence Index, the investor confidence survey results from the University of the Thai Chamber of Commerce, and investment climate statements from the Federation of Thai Capital Market Organizations.
Ms Wilasinee said investors should follow policy updates, especially on the outcomes of the Thai Monetary Policy Committee's meeting, the European Central Bank's meeting this week, and the Fed's Federal Open Market Committee meeting this month.