ASPS Picks Best 18 Stocks to Outperform the Market when Lockdown Fears Ease

Following the Centre for Covid-19 Situation Administration’s (CCSA) consideration to implement stricter control measures, Asia Plus Securities (ASPS) has compiled a list of the best 18 stocks with strong earnings that tend to outperform the market once the lockdown fears subside.  ASPS reported that the SET Index decreased by -6.34% during the outbreak in Samut Sakhon, compared to -4.79% during the introduction of Covid-19 control zoning.

As a result, ASPS believes stocks that are likely to drop sharply in response to negative sentiments tend to recover more quickly if the control is effective (High Risk High Return), such as those in the electronic, petrochemical, finance, construction, telecommunications, food, and tourism sectors.

DOHOME, SPVI, JMART, PLANB, COM7, JMT, IVL, PTTGC, MINT, MCS, TFG, GPSC, SAWAD, AP, CRC, GULF, AEONTS and M are anticipated to significantly outperform the market in the week and month following the lockdown.

Thailand has implemented tougher Covid-19 restrictions in 10 dark-red zone provinces, effective today July 12, in order to combat the curve of new infections.

CCSA on Friday (July 9) approved new restrictions on movement for 14 days in Bangkok and other nine provinces, including Nakhon Pathom, Narathiwat, Nonthaburi, Pathum Thani, Pattani, Yala, Samut Prakan, Samut Sakhon and Songkhla. Additionally, the CCSA will extend the current state of emergency for an additional two months, until September 2021. This will be submitted to the cabinet for final approval on Tuesday (July 13).

Residents in the said provinces are asked to work from home, except those in the service sector and/or those employed by essential public utilities, and are required to remain at home between 21:00 and 04:00.

Gatherings of more than five people are banned, except for work, religious ceremonies and practices, and traditional ceremonies.

Shopping malls can only open for supermarkets, restaurants, banks, pharmacies and phone shops until 20:00, as well as public parks. Meanwhile, convenience stores are allowed to open from 04:00-20:00.

Public transportation will run between 03:00-21:00. High-risk places such as health spas, massage shops, and beauty treatment shops are ordered to shut down.