Constitution Rewrite to Buoy SET Index above 1,650pts, Analysts Recomm. Laggard Play

The Constitutional Court yesterday (March 11) allowed Parliament to proceed with a constitution amendment but a referendum is requested to be held prior drafting. Analysts are positive towards this issue as it would buoy the SET Index to 1,650 points, recommending laggard play such as BBL, KBANK, TISCO, PTT, and ADVANC.

 

Asia Plus Securities (ASPS) stated that as the Constitutional Court on March 11 ruled that the charter amendment does not violate the constitution, therefore Parliament is allowed to proceed a constitution rewriting, ASPS believes it will buoy the SET Index to reach 1,650 points, pointing out that the SET still remains in an uptrend.

 

ASPS recommends stocks with price laggard from fundamentals including the banking sector: Bangkok Bank Pcl. (BBL), Kasikornbank Pcl. (KBANK) and Tisco Financial Group Pcl. (TISCO), energy sector: PTT Pcl. (PTT) and ICT sector: Advanced Info Service Pcl. (ADVANC).

 

While Thailand’s Centre for COVID-19 Situation Administration (CCSA) plans further relaxing Covid-19 restrictions in preparation for celebrating Songkran festival in masks. Following this matter, APSP believes it would create a positive sentiment to tourism and aviation stocks such as Asia Aviation Pcl. (AAV), Minor International Pcl. (MINT) and Central Plaza Hotel Pcl. (CENTEL).

 

Capital Nomura Securities (CNS) sees the re-opening stocks to continue outperform the market thanks to a positive sentiment from lockdown easing, recommending laggard play with top picks are CPALL, BJC, CRC, SPA, BDMS and BH.