Listed companies in the retail, consumer, food, finance, construction, transport, tourism and medical sectors are set to benefit from the new Pheu Thai-led administration's policies, says Bualuang Securities (BLS), which advises investors to focus on mid-cap stocks.
In addition to the launch of Vayupak Fund units, which have boosted the Stock Exchange of Thailand by 6% this month-to-date, BLS said speculation on stocks should increase based on the government's recently announced policies, including the 10,000-baht digital handout, debt restructuring and infrastructure investments, potentially driving up the Thai index.
Equity investors should focus on mid-cap stocks likely to benefit, as they are in sectors prioritised by government policies, noted the brokerage. With a launch scheduled for later this month, the digital wallet scheme will benefit retail stocks such as CPALL, CP Axtra (CPAXT), Berli Jucker (BJC), Home Product Center (HMPRO) and Dohome (DOHOME).
BLS said consumer, food and finance businesses should also benefit, including Carabao Group (CBG), Osotspa (OSP), Ichitan Group (ICHI), Neo Corporate (NEO), Srinanaporn Marketing (SNNP), KCG Corporation (KCG), MK Restaurant Group (M), After You (AU), Central Plaza Hotel (CENTEL), Krungthai Card (KTC), Muangthai Capital (MTC) and Aeon Thana Sinsap Thailand (AEONTS).
Retail stocks such as CPALL, CPAXT, BJC, HMPRO and DOHOME will also receive windfalls from a policy to reduce the electricity tariff, increase strategic fuel sources, and implement a single price for electric trains, said the brokerage.
Power plant stocks such as Gulf Energy Development (GULF), Gunkul Engineering (GUNKUL), B.Grimm Power (BGRIM) and PTT Exploration and Production (PTTEP), along with transport stocks such as BTS Group Holdings (BTS) and Bangkok Expressway and Metro (BEM) should also benefit from the government's short-term policies, said BLS.
Krungthai Bank (KTB), TMB Thanachart Bank (TTB), KTC and MTC are expected to gain from the government's medium-term debt restructuring plan with financial institutions and asset management companies, noted the brokerage.
BLS said Asset World Corp (AWC), Erawan Group (ERW), CENTEL, Airports of Thailand (AOT), Asia Aviation (AAV) and Bangkok Airways (BA), as well as media company Plan B Media (PLANB) should benefit from tourism promotion policies, including visa facilitation, event and concert organisation, and promotion of the country's soft power.
The brokerage said investment in infrastructure, including rail, water, road, air transport, logistics and aviation facilities, and water management systems should provide a boost to Ch. Karnchang (CK), Sino Thai Engineering and Construction (STEC), Civil Engineering (CIVIL), Siam Cement (SCC), Siam City Cement (SCCC), SCG Decor (SCGD), Tipco Asphalt (TASCO), SCGJWD Logistics (SJWD), AOT, Asia Network International (ANI), BA and BTS.
Food and modern agriculture stocks should post higher domestic sales and exports, including Charoen Pokphand Foods (CPF) and GFPT. The medical and wellness hub policy could benefit Bumrungrad Hospital (BH), Praram 9 Hospital (PR9) and Bangkok Dusit Medical Services (BDMS), BLS said.