Strong Q1 results could attract fund inflows to SET
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Strong Q1 results could attract fund inflows to SET

First-quarter financial results were stronger than expected for listed Thai companies, gaining 3% year-on-year and 68% quarter-on-quarter, which could attract more fund inflows to the Thai bourse, with the index topping 1,400 points in the near term, say analysts.

Profits of listed companies amounted to 276 billion baht in the first three months this year, exceeding market estimates of 230 billion, with many large companies resuming profitability after losses, said Yuanta Securities (Thailand).

The brokerage attributed the improved performance to cost control efforts.

“We have begun to see large stocks being bought back by investors, including foreign investors, resulting in an appreciation of the baht recently,” Yuanta said in a research note.

This positive trend could continue in the second quarter, supporting the Thai stock index returning to 1,400 points again, from around 1,370 points currently, the brokerage said, noting the market continues to be volatile and investors should exercise caution.

Asia Plus Securities (ASPS) said political uncertainties have pressured the Thai stock market, possibly causing fund flows and trading value to slow in the short term until investors start to see a clear direction.

The brokerage recommends investors focus on fundamental stocks, which accumulate buys when their prices start to fall.

“When the political situation returns to normal, these fundamental stocks are expected to see their prices increase substantially. But if the situation worsens, this group will decline less than the others,” noted ASPS.

The brokerage deems the following stocks interesting: KCE Electronics (KCE), Hana Microelectronics (HANA), Aurora Design (AURA), Home Product Center (HMPRO), Central Pattana (CPN), Erawan Group (ERW), Bangkok Bank (BBL), SCG Packaging (SCGP), Krungthai Bank (KTB), Ngern Tid Lor (TIDLOR), Thai Oil (TOP), PTT Oil and Retail Business (OR), Central Plaza Hotel (CENTEL), Advanced Info Service (ADVANC), Aeon Thana Sinsap Thailand (AEONTS), Osotspa (OSP), TPI Polene (TPIPL), Thai Life Insurance (TLI), i-Tail Corporation (ITC), Kasikornbank (KBANK) and Thanachart Capital (TCAP).

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