Asia Plus Securities reveals 9 stocks from the high dividend group. Get stronger baht and lower interest rates There is a chance for a recovery. Benefiting from lower yields on US bond yields supported more money flowing into riskier assets. Meanwhile, the baht has regained its strength. After the Federal Reserve is expected to cut interest rates in September.
The research department of Asia Plus Securities (ASPS) revealed that after the announcement of important figures for the US economy, inflation in June rose to 3.0% year-on-year, which is lower than the market expectations of 3.1% year-on-year and slowed from the previous month at 3.3% year-on-year and reached a 4-year low, and it is considered that inflation in the United States in June slowed more than expected.
In addition to the US labor market sending a signal of continued slowdown. These are all factors that the Fed is taking into account to further ease monetary policy. As a result, the market is expecting the Fed to cut interest rates up to 3 times this year (previously expected 1-2 times), with the first time in September, an increase of 84.6%.
Such a situation continues to show a picture of money tending to leave safe assets. It flowed more into riskier assets, with the dollar index falling to 104.44 points, while the price of West Texas Intermediate crude rebounded to $85.4.
In addition, most global stock markets closed in positive territory, while the US 10-year bond yield fell to 4.2% (-4.2% Mt or 27bps lower), causing the US-Thailand 10-year bond yield spread, GAP, to narrow to 1.59%, supporting the baht to rise to 36.37 baht/USD.
3 Groups of Stocks Evaluated, 9 Listed Companies Get Benefits
Therefore, the investment strategy during this period, the research department expects that there will be 3 groups, hoping that they will recover to receive the declining trend of US bond yields as follows:
1. High dividend stocks like SIRI, TTB, PTTEP
2. Stocks Benefiting from Strong Pale: GULF, BGRIM, GPSC
3. Stocks suffering from bearish interest rate cycle: JMT, MTC, Sawad, TIDLOR
Summary: Expect the Fed to cut interest rates based on US economic figures. Sending a signal to slow down and this gives us a picture of money tending to leave safe assets. And flowing into riskier assets
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