Eyes on Reopening Plays as CCSA Plans to End Night Curfew

The analyst anticipates that at today’s (September 10) meeting of the Center for COVID-19 Situation Administration (CCSA), the night curfew and Emergency Decree will be lifted. Thus, the analyst said that it will benefit stocks in department stores (CPN, CRC), transportation (BTS, BEM), and convenience stores (CPALL).

Asia Plus Securities (ASPS) believes the Centre for COVID-19 Situation Administration (CCSA) meeting to review the curfew will weigh significantly on the SET Index today. Night curfew at 21:00-04:00 and Emergency Decree that has been imposed in the country for more than 1 year and a half, are anticipated to be either shortened or lifted, effective on October 1, 2021. While relaxing the curfew lengthens business hours and supports the resumption of economic activity, it also accelerates COVID-19 infection or results in a new wave of outbreak resurgence.

However, the government expects COVID-19 to become an endemic disease and focuses on keeping COVID-19 from affecting other activities instead of stopping infection. New cases may increase, but vaccines will alleviate COVID-19 impact. As the government is expected to ease lockdowns further, it will benefit stocks such as department stores (CPN, CRC), transportation (BTS, BEM), and convenience stores (CPALL).

Beside that, the government is anticipated to focus on economic stimulus and teasing economic activities from now on. The government is projected to use similar economic boost measures as before like Kon La Krueng (Half-Half scheme), and Shop Dee Mee Kuen (Shop and Payback scheme)

Economic boost measures will boost purchasing power and spending sentiment, benefiting commerce plays (CPALL, BJC, CRC, HMRO, DOHOME, COM7, SPVI) and convenience store plays (CPN).