Brokers aim to test May SET at 1580 points, pick 6 stocks with good fundamentals – earnings are recovering. Receive state-supported policies

Asia Plus Securities Limited Assessing the economic picture during the month of May. Male 67 Thai stock market (set index) Adjusting Responses to Geopolitical Risks Make the upside start to open up by looking atThe indicator target is set at 1,580 points In addition to the fiscal policy that helps support the economy by accelerating the disbursement of the 2024 budget, the profits of listed companies are likely to recover in stages.

The analysis department assessed the overall investment picture for the Thai stock market in May 2024 saying there is a chance of crossing the lowest point. We are beginning to see many factors helping to drive the economy, such as strong fiscal policy by accelerating the disbursement of the 2024 budget within just 5-6 months at a value of 3.48 trillion baht, which is 9.3% more than the previous year, in addition to the various stimulus measures taken by the government. For the sector including increasing the minimum wage to 400 baht and free visa fees for tourists. Digital money will be distributed in the amount of 10,000 baht in the next stage.

This is despite the fact that US interest rates may remain at 5.5% for a longer period after inflation is higher than expected. The reason is the issue of the protracted Middle East war. But the downward interest rate cycle is likely to begin to unfold over the remainder of this year. It also builds confidence in the stability of the Thai stock market. It is encouraging that trading volume will gradually return to the Thai stock market later on.Stock Exchange of Thailand (SET) Issuance of measures to upgrade and monitor short selling, which is expected to take effect at the end of the second quarter of 2024, helping to support the reversal of Thai stocks to have a chance to return above 70% this year.

An important issue to follow is Thailand's gross economic report (GDP) in the first quarter of 2024, which the market expects to increase by 0.6% from the previous quarter. This will help avoid the risk of technical stagnation (technical recession) and you will have a chance to recover step by step. As for the global economy, which is gradually shrinking, operating trends must be followedFiscal Policy Committee (MPC) AndFederal Reserve (Federal Reserve) What will be the trend? Before the meeting in mid-June 67

At the same time, investors find the Thai stock market more attractive for investment. With factors coming from 1. Trends in announcing profits for listed companies for the first quarter of 2024, which have the potential to achieve distinct growth over the previous quarter. This is because the earnings base for the fourth quarter of 2023 was lower than usual. Along with gains from exchange rates supporting the baht's depreciation of more than 7% during the first quarter of 2024, stocks benefited from the baht's weakness. It will be a stock with a market capitalization of more than 40%, including global crude oil prices rising sharply by more than 15%, which will help support gains from oil prices (dividend) in stocks in the commodity group Large market share

2. Thai Stock Value (Valuation Group) You will see an important fundamental support level at 1,350 points, where the average Thailand stock price at 1,350 points in 2024 is 14.7 times (-1SD in 10 years) which is the lowest level after the Covid-19 crisis in 2014.63 while the PBV is 1.31 times (-2SD in 10 years), which is also an area where the spread between bond and equity yields is very wide, supported by a MEYG of 4.25% (above historical average). Giving money the opportunity to gradually flow into risky assets in the coming period. Meanwhile, the Thai stock market is still enjoying a significant rise from the target index of 1,580 points.

For investment strategies for May 2024, Analysis sectionI recommend stocks with good fundamentals, recovering earnings, and support from government policies e.g CP All Public Company Limited or CPALL, Kasikorn Bank Public Company Limited or K Bank, SCG JWD General Logistics Co., Ltd or Prostration, C. CARNCHANG GENERAL CO., LTD or CK, WHA PUBLIC LIMITED or World Health Assembly And Charon Pokvand Foods General Co., Ltd or CPF