SVI Public Company Limited

Asia Plus Securities assesses that the Thai stock market in September still faces pressure from geopolitical risks, rising oil prices, and foreign capital outflows, but there are still opportunities for selective stock picking, especially stocks that benefit from the weakening baht and rising commodity prices. The firm highlights top picks BBL, PTT, and BCH. Brent crude oil prices surged to $90.49 per barrel, while WTI stood at $86.27 per barrel. This raises the probability of a U.S. Federal Reserve rate hike at its September meeting to 65.4%, and the 10-year U.S. Treasury yield rose to 4.75%, the highest in a year. Foreign investors were net sellers in the Thai stock market in August, with net selling of 24.565 billion baht, and accumulated net short positions in the futures market of over 51,000 contracts. This pushed the baht to weaken to 33.16 baht per U.S. dollar, opening opportunities for three stock groups: export groups led by HANA, SVI, DELTA, and KCE; tourism groups led by AOT, AAV, BA, MINT, CENTEL, and ERW; and hospital groups led by BH, BDMS, PR9, and BCH. The Thai stock market structure has a 26% share of commodity stocks, helping to keep the index less volatile than the region. Meanwhile, Bitcoin risks a consolidation in September, with a recommendation to take short-term profits in DR: COIN01 and DR: HOOD80, and to watch for speculative opportunities in Tesla stock via DR: TSLA80 ahead of the Cybercab launch event.