Asia Plus Research Department indicates that the longer the COVID-19 in the country, the longer The more the opportunity to press the overall economy Including the profits listed companies sign Which there are still many factors that support The MPC has the opportunity to reduce interest faster. Both inflation remained low -0.27% and to help stimulate the economy sluggish in the short term. Along with encouraging the baht to continue to appreciate, delaying appreciation
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While investors still expect The MPC also has an opportunity to cut interest rates as well, as reflected from the 1-year Bond Yield at 0.38%, which is considered unusual. Which is lower than the policy interest rate of 0.5%
Policy rate cut Is also an important force that will increase the upside of the open market And able to support lower profits of listed companies The research department evaluates the target for the Year ’64 index at the policy interest level of 0.5% under the Market Earning Yield Gap of 3.7% and EPS64F 65.04 baht / share (considered conservative at the time of the Fund Flow inflow) at 1,550 points. Interest down another 0.25% will push the optimum P / E up 1.5 times, or turn the index target another 96 points to 1,646 points.
If the target index for the year 64 is the same at 1,550 points, but P / E is trading higher, comparable to a cut of 0.25%, it will be able to support the profit of listed companies in the year ’64 down by 5.87%, down from 65.04 baht / share. To 61.23 baht or down 3.82 baht / share
Asia Plus also provides a focus on selecting large stocks. Driven by Blue Wave flows and stocks that benefit from Mr. Jeo Biden’s policy are Asia stocks, Energy stocks, Dividend stocks, featured by Toppick’s 3 companies: PTT, GULF and TASCO.
Index 51
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