Asia Plus Picks 7 Stocks Benefiting from the Country’s Reopening

Asia Plus Securities (ASPS) believes Thailand will be able to carry out the vaccination campaign as planned, leading to a rise in fund inflow. Once economic activity returns to normal, it will foster positivity for stocks in sectors that stand to gain from the country’s reopening, including aviation, transportation, tourism-hotel, media, commerce-property, banking, and leasing.

The delivery of 1.8 million doses of AstraZeneca vaccine will benefit the Thai market, bringing the number of people receiving vaccines will shortly reach double digits. The report stated that after vaccination coverage reached more than 10% of the population in the United States and England, it obviously resulted in increased fund flow to their market.

The WHO’s approval of the Sinovac vaccine for emergency use has relieved concerns about the vaccine quality, safety and effectiveness, and will probably speed up vaccination. If the vaccine is imported and distributed according to schedule, over 40 million people, or 56% of Thailand’s population, should be immunized by the end of 2021.

As a result, vaccination distribution will support the restoration of regular economic activity, resulting in a positive sentiment toward stocks benefiting from the country’s reopening: aviation, transportation, tourism-hotel, media, commerce-property, banking, and leasing.

Furthermore, it is believed that the vaccine will help to mitigate downside risk on the Thai stock market. While surplus liquidity has the potential to come into the market if such unfavorable factors are eased.

AOT, BDMS, MAJOR, MINT, MTC, STEC, and SAT are top picks to celebrate the country’s reopening. ASPS said that those stocks’ value are still laggard and has an obvious growth tendency for the rest of this year. Moreover, they are likely to outperform the market, as commodity plays have done lately.