JPMorgan is optimistic about the overweight in the Thai stock market, which is expected to reach 1,700 points by the end of 2024.

JP Morgan looks positive and gives overweight to the Thai Stock Market, which is expected to reach 1,700 points by the end of 2024 due to the trend of fiscal easing measures. The recovery of the lackluster tourism sector strengthens the government's digital wallet project

JP Morgan Revealing the views on the Thai stock market during the JPMorgan Thailand conference held in Bangkok on January 26, 2024. The view on the Thai stock market remains “investment overweight” (overweight) From the trend of fiscal easing measures tourism industry recovery including Baht promotion and government digital wallet project In addition, the stock market index (SET Index) is expected to rise to 1,700 by the end of 2024 from the current level of 1,418 points.

This meeting has been honored before Dr. Prasert Sensukprasert, Permanent Secretary of the Ministry of Energy AndMr. Wirat Thatcharingkarnsakul, Deputy Secretary General of the Board of Investment (BOI) Participate and give a keynote speech on this topic Energy policy and infrastructure investment in Thailand including various industries such as automobile and electric vehicle production.

According to the bank's information, post-election trends could lead Thailand's GDP growth to 3.7% in 2024, which is the first time in five years that Thailand's growth exceeds the global growth rate. Coupled with the clear trend of fiscal easing measures by the US Federal Open Market Committee (FOMC) in the second half of 2024, JPMorgan has set a base target of 550 for the MSCI Thailand Index, and this has historically delivered returns of 10% to 11% after a month to Three months from the first interest rate cut.

Moreover JP Morgan expects the Stock Exchange of Thailand (SET) to reach 1,700 points by the end of the year from the current level of 1,418 points.

Mr. Marco Sucharitakul, Senior Executive Director for Thailand at J.P. Morgan He said:We are confident in the Thai market even though global financial conditions remain difficult. We expect the Thai market to be well prepared based on several factors, such as strong GDP growth and a healthy current account surplus. This will help it resist the forces of global market trend.

Thailand's current account is likely to continue to recover following various factors, including improved business conditions. Lower oil prices and transportation costs Stable balance for key products Along with the continued recovery of the tourism industry, JPMorgan expects the current account balance to rise from 0.8% of GDP in 2023 to 4.1% of GDP in 2024.

Mr. Marco added that “The recovery in tourism will further improve employment in the service sector. This will have a moderating impact on income growth. The 500 billion baht digital wallet project, including other government spending stimulus policies, if successful. It will benefit Thailand’s retailers in a comprehensive way.”

Last year more than US$5 billion flowed from the market, however, foreign capital outflows are expected to reach in 2024 due to the opportunity for government support in fiscal policy.

Mr. Rajeev Bhatt, Asia Equity Strategist and Chief Equity Strategist at ASEAN (J.P. Morgan He said “Although the US economy was able to escape from recession this year. But the risk of a slowdown in 2024 remains high.”

Mr. Rajeev added “In our view ASEAN stock markets may decline. At the same time, foreign capital outflows remain very likely. However, the attitude of foreign investors is unlikely to have a serious impact on capital outflows at a high level. Investors should focus on high-quality stocks and industries that have unique factors that can help offset headwinds from the global economy.

Mr. Jakravan Phonfanrat, Head of Securities Research at J.P. Morgan He said “With regard to the domestic industry, JP Morgan is optimistic about stocks in the consumer products sector. The luxury category and the utility category

Mr. Chakravan concluded by saying,Thailand is taking another step towards attracting foreign direct investment in electric vehicle production. This will account for approximately 16% of Thailand's total annual automobile production in the next few years.