Thai Stocks Surge with New Government Policies: Investors Eye Mid-Caps

[snoop1130]

 

The Stock Exchange of Thailand (SET) has surged by 6% this month, fuelled by the Pheu Thai-led administration’s progressive policies. Brokerage firm Bualuang Securities (BLS) revealed that a range of listed companies across various sectors are set to benefit significantly from these changes.

 

The new government initiatives include a 10,000-baht digital handout, debt restructuring, and substantial infrastructure investments. These measures are expected to drive up the Thai index and spark a frenzy of stock speculation.

 

BLS is urging investors to focus on mid-cap stocks in sectors like retail, consumer goods, food, finance, construction, transport, tourism, and healthcare. Retail giants such as CPALL, CP Axtra (CPAXT), Berli Jucker (BJC), Home Product Center (HMPRO), and Dohome (DOHOME) are predicted to reap substantial benefits from the forthcoming digital wallet scheme.

 

Beyond retail, the consumer, food, and finance sectors are also poised for gains. Companies like Carabao Group (CBG), Osotspa (OSP), and Ichitan Group (ICHI) are well-positioned to benefit. Financial institutions and asset management firms, including Krungthai Bank (KTB) and TMB Thanachart Bank (TTB), stand to gain from government-led debt restructuring efforts.

 

The policy initiatives also include plans to cut electricity tariffs, expand fuel sources, and set a single price for electric trains. These are expected to boost companies like Gulf Energy Development (GULF) and Gunkul Engineering (GUNKUL).

 

 

 

 

Transport sector leaders such as BTS Group Holdings (BTS) and Bangkok Expressway and Metro (BEM) are projected to benefit from an increase in infrastructure projects, spanning rail, road, air, and water transport.

 

Tourism is another sector set for a boost, with policies aimed at easing visa processes and promoting major events. Key players like the Asset World Corp (AWC) and Erawan Group (ERW) are positioned to capitalise.

 

Infrastructure plans further extend to firms stepping up in logistics and water management systems, such as Ch. Karnchang (CK) and Sino-Thai Engineering and Construction (STEC). The growing focus on modern agriculture and higher domestic sales could lead to gains for companies like Charoen Pokphand Foods (CPF).

 

Finally, the medical sector is also expected to flourish, with companies like Bumrungrad Hospital (BH) coming into prominence under the new wellness hub policy.

 

Investors are advised to stay alert and consider mid-cap stocks that align with the government's new policies for potentially lucrative opportunities.

 

File photo for reference only

 

-- 2024-09-16

 

 

[John Drake]

Rah, rah, rah. Sis, boom bah.

[hotchilli]

12 hours ago, snoop1130 said:

The new government initiatives include a 10,000-baht digital handout, debt restructuring, and substantial infrastructure investments. These measures are expected to drive up the Thai index and spark a frenzy of stock speculation

 

[fondue zoo]

There's always so much surging going on here.. in so many ways.

[Srikcir]

16 hours ago, snoop1130 said:

the medical sector is also expected to flourish

Especially since government efforts to control thru drug prices comparisons has failed from PM's Prayut through Thavisin: 

Some private hospitals were reported to charge the prices of drugs 8000-16000% higher than the average prices.

1. Private hospitals to display prices of drugs, says Thai Government - With the new measure, private hospitals, manufacturers, importers and wholesalers are required to report sales prices to the Department of Internal Trade. 2019
2. Private hospitals under fire as government cracks down on skyrocketing costs.The Internal Trade Department tightens control on private hospitals, urging them to play ball in the battle against soaring medical expenses.The govern  ment demands transparency and cooperation from over 300 private medical institutions. 2023

Now no publication of price comparisons, price control actions, etc. I don't expect Paetongtarn will pursue private hospital drug pricing given the strength of Thai oligarch interests.

 

 

 

 

[realfunster]

I'd treat such "news" with caution.

 

It's a Mickey Mouse market that has gone nowhere in a decade. Better off parking your hard-earned elsewhere.

 

Relatedly, I am still waiting for re-instatement of my Thai Airways debenture which was written off a few years back due to the financial restructuring, which itself was caused by rampant corruption, nepotism and mismanagement.

 

The only surprise in the OP was that they missed to opportunity to mention Thailand as a "financial hub".

[villageidiotY2K]

49 minutes ago, realfunster said:

I'd treat such "news" with caution.

 

It's a Mickey Mouse market that has gone nowhere in a decade. Better off parking your hard-earned elsewhere.

 

Relatedly, I am still waiting for re-instatement of my Thai Airways debenture which was written off a few years back due to the financial restructuring, which itself was caused by rampant corruption, nepotism and mismanagement.

 

The only surprise in the OP was that they missed to opportunity to mention Thailand as a "financial hub".

hi there, i also invested few amount on NOK AIR on  thai stock which became bankrupt, but ive still got it on my stock portfolio.

Once theyre bankrupt, they need to give back the monies to the share holder?