Kaohoon’s Top News on June 14, 2021

– The Stock Exchange of Thailand is scheduled to release the revised calculation of the SET50 and SET100 Indexes on June 16, 2021, which will take effect on July 1, 2021. The SET50 Index is expected to include IRPC, KCE, STGT, and STA. Analysts highlighted IRPC and KCE as enjoying an increasing demand and a dividend yield of 7.3%, while, for the SET100 Index, favoring ICHI and SINGER as having a reasonable price. Additionally, analysts expected IRPC’s earnings to continue growing gradually in 2Q21, before it reaches 10 billion baht by the end of the year, giving a target price of 4.50 baht per share.

–  FTSE Rebalance will raise the Thai stock market’s weight by 0.01% to 0.59%, effective at the closing on June 18, 2021, with an estimated inflow of 2 billion baht. Passive Fund is interested in OR, SCGP, CBG and OSP. Meanwhile, KEX, NRF and RT will be included in the Small and Micro Cap Indexes.

–  SCG Packaging (SCGP) is convinced that, despite higher freight rate and cost, the company’s momentum will continue in response to a spike in selling price. Meanwhile, the acquisition of Intan Group and Duy Tan is expected to be concluded in 1-2 months and will start generating revenue in 3Q21. 

–  Several public and private hospitals have announced that vaccination drives would be postponed from June 14-20, 2021 due to vaccine shortages. Minister of Public Health Anutin claimed that the Ministry of Public Health should bear no responsibility for this incident, since the vaccine has been distributed appropriately and properly.  It should contact the Bangkok Metropolitan Administrator for additional information about the postponement. However,  Health officials admitted that extra vaccines had been allocated to Bangkok due to the city’s high risk status. Analysts stated that this issue raised little concern to the stock market, but affirmed that the index will not fall below 1,600 points.

–  The overwhelming speculation that Thailand will reopen in the second half of 2021 drove Airports of Thailand (AOT) up 5.38%. AOT President Nitinai believes the Covid-19 situation is still uncertain and that the Phuket Sandboxes may be ineffective in boosting the economy. Analysts predicted AOT would suffer another massive loss of 14,074 million baht this year before rebounding to earn 9,318 million baht the next year.

–  SCB, BBL, and KBANK will return an interim dividend payment following approval by the Bank of Thailand. Analysts saw it as a sign of commercial banks’ recovery despite Covid-19. BBL is expected to offer a dividend yield of up to 4.5%, followed by SCB and KBANK at 4.1% and 3.5%, respectively.