Retail, banking and tourism stocks are set to benefit from the policies of the new coalition government led by the Move Forward Party, according to analysts.
Policies announced by the Move Forward Party, which bagged 152 seats in the House of Representatives and is set to lead the new coalition government, focus on boosting the efficiency of the economy by reducing monopolies and increasing welfare for all, said Asia Plus Securities (ASPS).
In the short term, investors interpreted the party's statement as negative for some listed companies, though the market is awaiting clarity on the government's formation and the selection of a new prime minister, said the brokerage.
"Sectors that should benefit from the policies of the Move Forward Party are retail, tourism, transport, electronics, banking and hospitals," said ASPS, with beneficiaries including Central Pattana (CPN), Home Product Center (HMPRO), COM 7, Srinanaporn Marketing (SNNP), KCE Electronics (KCE), Nex Point (NEX), Krungthai Bank (KTB) and Kasikornbank (KBANK).
Meanwhile, companies in the hotel, restaurant, energy, leasing and construction sectors are expected to lose out from the party's policy direction, said the brokerage.
Power conglomerates such as Gunkul Engineering (GUNKUL), Gulf Energy Development (GULF), B.Grimm Power (BGRIM) and Global Power Synergy (GPSC) are likely to be adversely affected, said ASPS.
The party's pledge to hike the minimum wage could affect Sino-Thai Engineering and Construction (STEC) and CH.Karnchang (CK) in the construction business.
Stocks expected to be hurt by the party's anti-monopoly stance and support for small and medium-sized enterprises (SMEs) include Intouch Holdings (INTUCH), Advanced Info Service (ADVANC) and True Corporation (TRUE).
Krungsri Capital Securities said the Move Forward Party's policies focusing on welfare, increasing the minimum wage and supporting SMEs should increase people's purchasing power and improve the economy.
Stocks poised to gain from this policy are Bangkok Bank (BBL), ADVANC, Central Retail Corporation (CRC), Srisawad Corporation (SAWAD), Siam Global House (GLOBAL), Osotspa (OSP), MC Group (MC), TOA Paint (Thailand) (TOA), Ichiton Group (ICHI), Aeon Thana Sinsap (AEONTS) and KBANK, said Krungsri Capital Securities.
Yuanta Securities said domestic plays, especially in retail, finance and food and beverage, are recommended for investors as the tourism sector enjoys a strong recovery and the new government is set to announce stimulus policies.
Top picks include KBANK, BBL, HMPRO, ICHI, Srisawad Capital (SCAP) and Haad Thip (HTC), said the brokerage.
"Stocks in these sectors are likely to face minimal risks from external economic uncertainties," noted Yuanta.