Asia Plus Securities assessed the direction of the capital market for the week, saying the Thai stock market is supported by 3 positive domestic signals. First, Fitch Ratings raised Thailand's credit rating outlook from Negative to STABLE at the BBB+ rating. Second, the consumption stimulus measure "Thai Help Thai Plus Phase 2" worth 50 billion baht, which the government is preparing to submit to the Cabinet for approval, after the first phase generated cumulative circulating funds of 161 billion baht, with more than 26 million eligible recipients and more than 1.2 million participating shops. Third, August export figures, which the market expects to accelerate to +24.8% YoY from +21.6% YoY in February, with the export sector accounting for as much as 60% to 70% of the country's GDP. These factors support a rotation of funds from global-economy-linked stocks into domestic-economy-linked stocks whose prices have lagged the market. The groups that rose against the market trend were commercial banks +2.99%, property funds and REITs +2.37%, packaging +1.77%, insurance +1.76%, finance +1.19%, and commerce +1.10%. Meanwhile, global market sentiment began to ease after the Bank of Japan voted 7 to 2 to raise its policy interest rate by 25 basis points to 1.25%, in line with market expectations, sending the yen weaker to 156.95 yen per US dollar and pushing the US dollar index above 100 points. At the same time, global crude oil prices fell for a third consecutive day, helping ease short-term inflation concerns. Tonight, after the US market closes, the S&P 500 and S&P 100 will officially add SanDisk and Bloom Energy to their indexes. Recommended standout stocks with individual positive factors are SNDK80, BE03, CBG, BJC, and BDMS.
Berli Jucker PCL
Carabao Group Public Company Limited
Bloom Energy Corp
Sandisk Corp
