Maybank Picks Bank-Energy-Services-Export to Benefit from the US $1.9Tn Covid-19 Aid

Maybank Kim Eng saw the US $1.9 trillion Covid relief package approval as a positive sentiment towards Thai market in the mid to long term, pointing out that the banking, energy,    transportation-tourism and exports sectors will benefit from this issue. 

 

The US Senate passed a $1.9 trillion stimulus bill on Saturday (March 6) on a 50-49 vote. The plan will include direct payments up to $1,400 to individuals and families earning less than $80,000 and $160,000 per year, an extension jobless aid payment through September with a $300 weekly boost, and etc. 

 

This stimulus package is expected to speed up US economic recovery, which would result in a strong US dollar in the mid to long term, but with a massive relief bill, the US dollar might be weakened in the near term. 

 

Maybank recommends 4 sectors to take advantages from a $1.9 trillion coronavirus aid as follows:

 

1) Bank: The bank stocks are cyclical, which are generally affected by a continued global reflation 

2) Energy Petro: Commodity prices are moving higher in response to an improving demand.

3) Services (Tourism, Trans): With pent-up demand, stocks in this sector are expected to rebound faster than forecasted despite being severely impacted by the Covid-19 pandemic.

4) Export (Electronic, Food, IE and Packaging): To be benefited from the US dollar weakening.