Thai stocks are projected to face a challenging investment setting within the coming month as a outcome of potential negative impression of the recent US rate of interest hike on regional US banks. Tisco Securities has expressed considerations over the situation, with Apichart Phubancherdkul, Tisco’s head of technique research, stating that “investment circumstances in May usually are not bright”.
Skyrocket determined to lift interest rates by zero.25% on May three, a transfer that will further exacerbate the continuing banking crisis within the US. Investors are suggested to keep a close watch on how US banks will react to this change in policy, in addition to monitor other aspects of US economic information corresponding to inflation and labour market figures.
Apichart famous that the following key occasion for US interest rates would doubtless occur through the upcoming mid-June Fed assembly, when the brand new dot plot chart, which information projections for the central bank’s key short-term interest rate by every Federal Reserve official, will be unveiled.
For the time being, Tisco Securities recommends that traders think about stocks with strong fundamentals to assist their funding portfolios amid the current uncertainty. In the primary quarter of 2023, Bloomberg Consensus anticipates that Thai SET-listed firms will report a total web revenue of 198 billion baht (US$6.three billion), marking a rise of 12% year-on-year and 36% quarter-on-quarter.
The industrial sector is predicted to expertise solid profit growth both on a yearly and quarterly foundation. Energy stocks, particularly, are anticipated to submit 16% revenue growth year-on-year and 113% quarter-on-quarter, in accordance with Tisco..