SCBAM aims to cut Thai stock target for 68 from 1,360 points, believes it will not fall below 1,000 points.

SCBAM aims to cut target for Thai stocks in 68 from 1,360 points, accepting risk from Trump's tax, believes it will not fall below 1,000 points, investment strategy: Defensive stocks, hospital groups, financial groups, focusing on large banks, and dividend stocks

Date: 3 April 2568 Ms. Nanthamanus Phiamthipmanus, Chief Investment Officer SCB Asset Management Co., Ltd. (SCBAM) revealed that The company is preparing to review the target for the Thai stock index (SET Index) in 2568 and the net profit per share of the market (EPS) down from the previous view of 1,360 points, EPS growth of 7%, lower than the consensus of approximately 10%.

The revision comes after the US announced a 36% reciprocal tariff on Thailand, higher than the previously expected 10-25%. However, it is still unlikely that the SET Index will fall below 1,000 points.

However, SCB Asset Management believes that in the second half of 2568, Thai stocks have a chance to recover from the following supporting factors:

• Government economic stimulus measures
• The Monetary Policy Committee (MPC) is expected to cut interest rates twice this year.
• The opening of a special Thai Sustainable Mutual Fund (Thai ESGX) to support LTF fund money, although it does not support the index to rise much, it will help reduce selling pressure.
• The Stock Exchange of Thailand's Jump+ project and other measures to boost confidence

SCB Asset Management believes that the end of the second quarter is an attractive time to invest in Thai stocks, but it still needs to monitor the impact of US tariffs, even though it believes that the government is prepared to solve this problem and expects negotiations to take place as soon as possible.

If left for a long time, it will have a negative impact on the economy. It is believed that the US's 36% rate is an announcement of a ceiling to allow for negotiations, so there is a chance that the rate will be reduced.

In addition, we must be careful about the occurrence of the Second Round Effect because Thailand's exports account for 30% of the country's gross domestic product (GDP), and trading partners in the region are also subject to high taxes, which may affect Thailand's exports this year, as well as the labor sector, employment, and domestic consumption.

For SCB Asset Management, the fund portfolio under management has been adjusted regularly before the US announced tax measures to reduce risk because it is considered that whether the tax rate is as expected or not is a risk that will occur.

“Investment strategy sees Thai stocks as the main portfolio, focusing on defensive groups such as hospital groups and financial groups, focusing on large commercial banks, including groups based on domestic consumption, and recommending dividend stocks and groups with low volatility.”

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