GBS Selects 8 Best Stocks to Benefit from Record-Breaking Exports-Weak Baht

Globlex Securities (GBS) expects the market may fall into a correction due to rising Covid-19 cases fears, prompting the Government to announce the closure of worker camps for 30 days in several provinces, together with a delay in vaccination rollout. Furthermore, the Bank of Thailand forecast slowing economic recovery  as it won’t be back To normal until 1Q23. As a result, GBS projects the SET Index to move in the range of 1,550-1,600 points and recommends 8 stocks to benefit from positive export data: AH, SAT, NER, STA, KCE, HANA, SMT and ASIAN.  

Despite the fact that domestic factors are negative for the Thai market, GBS believes the stock market will benefit from the May export report, coupled with the projection to show further growth in June. Moreover, Thai baht is expected to continue weakening amid the virus crisis.

Thailand’s exports expanded 41.59% year-on-year to USD23,057 million in May, the highest rate in 11 years, as the global economy recovered. 

The Commerce Ministry reported the value of Thai exports for the first five months in 2021 (Jan-May) had hit more than USD108,000 million, rising by 10.78%. While imports for the period rose 21.52% to USD107,141 million, resulting in a trade surplus of USD1,494 million.

Meanwhile the Thai imports in May worth a total USD22,261 million, expanding 63.57%, bringing to a trade surplus of USD795 million.

As a result, GBS suggests investing in stocks which are projected to benefit from a strong export outlook in June and Thai baht hit 13-month low such as Aapico Hitech (AH), Somboon Advance Technology (SAT), Northeast Rubber (NER), Sri Trang Agro-Industry (STA), KCE Electronics (KCE), Hana Microelectronics (HANA), Stars Microelectronics (Thailand) (SMT) and Asian Sea Corporation (ASIAN).