“Trinity” selects 4 stocks worth investing in in March, and recommends buying and accumulating if the index reaches 1370 points.

Trinity selects outstanding stocks for March and reveals 4 groups worth investing in. Evaluate the range of movement at 1,340-1,440 points, and we recommend accumulating if the index reaches 1,370 points or less.

Mr. Natchat McMasin, Assistant General Manager Securities Analysis Department Trinity Securities Company Limited revealed the trend of the Thai stock market in March 2024 regarding the picture of the Thai stock market in March. We expect to see a rebound from February. There are many supporting factors as follows.

1. Visa exemption procedures begin to be implemented between Thailand and China and this should lead to the arrival of more or less Chinese tourists.
2. Expectations of an increase in government spending, especially the investment sector, after the new budget law. There is an opportunity to pass it faster. Throughout March we expect to see continued positive developments from the House and Senate.
3. Investor confidence, especially general investors in the country, has risen after the SET began to adapt to be more active, be it measures to curb short selling or trading transaction programme, including disclosing various important information.
4. Money flow should start to turn more positive. After passing the MSCI index basket adjustment at the end of last month. This time, the Thai stock market came under slight pressure in the MSCI Emerging Markets basket.
5. The valuation of the Thai stock market has fallen into interesting territory, which is reflected by the Earnings Yield gap that has continued to widen and the relative P/E between Thai stocks and ASEAN stocks that has already fallen below average.
6. The lowering of earnings forecasts for Thai listed companies is likely to end temporarily. After the announcement of the fourth quarter results of 2023.

Assessing the SET movement framework this month, Mr. Natshat said, there will be a first support level at 1,370 points and an important support level at 1,340 points, on the other hand, we evaluate the first resistance level at 1,410 points and an important resistance level at 1,440 points. Strategically, we recommend investors find time to accumulate Thai stocks at the index area of ​​1,370 points or lower.

Interesting stock groups for this month include those that have seen strong momentum in this year's earnings forecast revisions over the past month. Most of them are related to the arrival of foreigners and high movement of people, including:

1. Hotel groups include MINT, CENTEL and ERW.
2. Retail groups include CPALL, CPAXT and BJC.
3. Hospital Group BDMS, BH, BCH, PR9
4. COMMUNICATIONS GROUP ADVANC, TRUE

An interesting group to speculate on based on environmental factors is the building contractors group. (according to government spending forecasts) and Securities Business Group (according to rising trading volume in the Thai stock market)

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