In June, the Stock Exchange of Thailand (SET) experienced a period of sluggishness due to political turmoil, leading the index to fall to its lowest level in nearly four years at 1,281.87 points. This was influenced by concerns such as potential dissolution of the Move Forward Party and a case against the prime minister, creating negative market sentiment.
Despite these challenges, there were positive developments towards the end of June. The finance minister announced an increase in the tax deduction limit for Thai ESG (TESG) funds and a reduction in the holding period, boosting market sentiment. As a result, the SET index managed to recover above 1,300 points briefly before ending the month at 1,300.96, down 3.3% from May.
To address share price volatility, short-sale measures like the uptick rule were implemented. While these measures aimed to stabilize prices, there was a decrease in trading volume as short sellers were limited. This caused a drop in daily short-sale volume from 5 billion baht to slightly above 1 billion baht.
Looking ahead, monitoring the government’s digital wallet campaign and upcoming bank earnings announcements are recommended. The second-quarter results of listed companies are also anticipated, with potential profit declines in some sectors due to seasonal factors and public holidays.
For July, the focus is on big-cap stocks targeted by TESG funds, including Airports of Thailand (AOT), Bangkok Dusit Medical Services (BDMS), CP All (CPALL), and Charoen Pokphand Foods (CPF). These stocks present investment opportunities amidst market fluctuations. Notifications affecting AOT’s profit and positive outlook, BDMS’s growth potential from foreign patients, CPALL’s market positioning with the digital wallet campaign, and CPF’s expected recovery after recent losses are key factors driving investment decisions.
Overall, strategic investment in these selected stocks can potentially yield positive returns in the current market climate.
