6 hours Ago
Increased spending during the upcoming Chinese New Year is expected to lift the Stock Exchange of Thailand (SET), benefiting stocks in the transport, agriculture, communication and retail sectors, says Krungsri Capital Securities (CNS). The brokerage noted the Lunar New Year celebration normally sees increased purchases of meat, food and fruit for ancestral worship. The extended holiday period for people of Chinese descent from mainland China, Taiwan and Hong Kong, who travel domestically and internationally, leads to an increase in family meals and is expected to increase activities in various sectors.
CNS anticipates greater use of expressways, petrol stations, department stores, airlines and hotels, as well as higher spending on goods. "The tradition of distributing money and gold during the festival, a cultural practice believed to bring good fortune to both the giver and receiver, will further stimulate economic activity," the brokerage said in a research note. From 2019 to 2024, the SET index rose 0.
81% and 0.23% during two weeks prior to and one week prior to Chinese New Year, respectively. Sectors benefiting from the festival normally show a consistently positive performance, with notable returns for specific groups for purchases two weeks prior to the festival, comprising the financial, transport, agriculture, communications, food and retail sectors.
Historical data indicates more than a 50% probability of achieving positive returns, according to the CNS research team. "As a consequence, we recommend focusing on stocks that benefit from Chinese New Year as an investment strategy," noted the brokerage. Stock picks for the financial sector include Aeon Thana Sinsap Thailand (AEONTS) and Krungthai Card (KTC), with target prices of 140 and 55 baht, respectively, while Airports of Thailand (AOT) is recommended in the transport sector at 64.
50 baht. For the agriculture sector, CNS suggests Charoen Pokphand Foods (CPF) and GFPT with target prices of 30 and 14.50 baht, respectively.
The top pick for retail stocks is CP ALL with a target price of 70 baht. Advanced Info Service (ADVANC) is CNS's communications pick with a target price of 305 baht..
