The Stock Exchange of Thailand (SET) has experienced a notable 6% increase in value this month, driven largely by the new administration’s forward-looking economic policies. According to a recent analysis by Bualuang Securities (BLS), the Pheu Thai-led government’s reforms are expected to substantially benefit a wide range of publicly listed companies across different sectors.
The administration’s recent initiatives include a 10,000-baht digital handout for citizens, debt restructuring plans, and significant infrastructure investments. These policies are anticipated to elevate the Thai index and ignite increased stock market speculation.
BLS recommends investors focus on mid-cap stocks within sectors poised for substantial growth. Retail sector giants such as CPALL, CP Axtra (CPAXT), Berli Jucker (BJC), Home Product Center (HMPRO), and Dohome (DOHOME) are expected to gain significantly from the new digital wallet scheme.
Additionally, the consumer, food, and financial sectors are set for considerable benefits. Companies like Carabao Group (CBG), Osotspa (OSP), and Ichitan Group (ICHI) are likely to see positive impacts. Financial institutions and asset management firms, including Krungthai Bank (KTB) and TMB Thanachart Bank (TTB), are also anticipated to benefit from government-led debt restructuring efforts.
The administration’s policies also include plans to reduce electricity tariffs, diversify fuel sources, and standardize prices for electric trains. These changes are expected to benefit companies such as Gulf Energy Development (GULF) and Gunkul Engineering (GUNKUL).
In the transport sector, companies like BTS Group Holdings (BTS) and Bangkok Expressway and Metro (BEM) are projected to benefit from an increase in infrastructure projects, which will span rail, road, air, and water transport.
Tourism is set to see a boost as well, with policies designed to streamline visa processes and promote major events. Key players in this sector, such as Asset World Corp (AWC) and Erawan Group (ERW), are positioned to capitalize on these opportunities.
Infrastructure projects will also benefit firms involved in logistics and water management systems, such as Ch. Karnchang (CK) and Sino-Thai Engineering and Construction (STEC). Additionally, the emphasis on modern agriculture and increased domestic sales could lead to gains for companies like Charoen Pokphand Foods (CPF).
Finally, the medical sector is expected to thrive under the new wellness hub policy, with companies like Bumrungrad Hospital (BH) likely to gain prominence.
Investors are advised to remain vigilant and consider mid-cap stocks that align with the government’s new policies for potentially profitable opportunities.
