CGSI reveals “Malaysian investors” view “Thai stock market” more positively, adjusts weight to Neutral

CGSI reveals “Malaysian investors” view “Thai stock market” more positively, adjusts weight to Neutral from Underweight, keeps an eye on Vayuphak Entertainment Complex mutual fund and political uncertainty

On September 25, 2567, the analytical team of CGS International Securities (Thailand) Co., Ltd. (CGSI) stated in a research report that they had met with clients in Kuala Lumpur, Malaysia, from September 19-20, 67. They found that most clients viewed the Thai stock market more positively compared to their previous meeting in June 67.

This time, most customers maintain their investment weight (Neutral) in the Thai stock market, from the original weight reduction (Underweight) in June 67. The main issues that customers are interested in are Vayuphak Mutual Fund, Entertainment Complex, political uncertainty and stocks that should be bought.

CGSI analysts said that most investors still focus on consumer and healthcare stocks, while reducing investment weight in the banking sector. However, the analysts believe that the inflow of foreign capital into the Thai stock market to benefit from the rebound and the stronger baht should help the banking sector improve due to the group's liquidity and the recovery of the Thai economy.

Since the beginning of September until now, foreign investors have net bought Thai stocks worth 3.1 billion baht, with investment in the banking group of around 2.1 billion baht, while the medical group and the commercial group have invested 8 billion baht and 3 billion baht, respectively. At the same time, foreign investors have sold stocks in the energy, petrochemical and real estate groups.

While since the beginning of the year until now, foreign investors have bought stocks in the ICT, food, medical and banking groups, while selling stocks in the real estate, energy and transportation groups.

The analysts stated that the Thai baht was one of the currencies that depreciated the most in early 67 before rapidly appreciating since the beginning of Q3/67 until now, causing the Thai baht to appreciate against other currencies in the region, except for the Malaysian ringgit.

Therefore, the baht is more volatile than most regional currencies. Therefore, it is believed that the Bank of Thailand is likely to reduce the policy interest rate at the next meeting on October 16, 67.

The Thai baht tends to strengthen, making stocks that focus on domestic businesses or Domestic play still a better choice than stocks with overseas businesses or External exposure, such as exporters and entrepreneurs in the electronics and food and beverage groups. Therefore, it focuses on investing in the consumer goods group, the banking group, and defensive stocks that are still underperforming, including stocks with high ESG scores because they are likely to be on the radar of Vayupak Mutual Fund.

CGSI analysts believe that Thailand and the United States are likely to raise interest rates sooner than expected, and the baht is likely to strengthen further in 67-68. Therefore, the SET index target for the end of 68 is 1,630 points, equivalent to a P/E of 16 times in 68 or -0.75SD of the 10-year average. Top pick stocks include AMATA, BBL, BCH, CBG, CPALL, CPN, CRC, KBANK, KLINIQ, PTTEP, and SIRI.

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