Kanthara Says Oil Prices and Bond Yields Will Drive Fund Flows, Recommends ITC with 21.30 Baht Target

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Kanthara Ladawan na Ayudhya, an executive director at Finansia Syrus Securities Public Company Limited, or FSS, said on the stock news program Stock Market Insight that the Thai stock market still faces its main pressure from rising US government bond yields and the direction of global crude oil prices. If Brent crude holds above 102 US dollars per barrel, that would be an important support level from which prices could rebound, but if it falls below 100 US dollars and moves around the low 90s, that would ease concerns and be more positive for the market. Oil prices are the most important variable reflecting the severity of war and geopolitics, which in turn affects inflation and interest rates. If oil prices decline, foreign fund flows are expected to return to the Thai stock market. As for the recent selling by foreign investors, he views it as stemming from the rise in bond yields rather than concerns over domestic flooding. Currently, cumulative net foreign buying stands at around 10 billion baht. As for the electronics sector, although it has faced selling pressure from concerns over revenue and delays in chip deliveries, market demand remains high. KCE and HANA still have upward trends, while DELTA is a market-leading stock and a global megatrend, with its share price still below the fundamental value that FSS estimates at 290 baht. As for commercial banks such as TISCO, which is preparing to report earnings among the first, the initial assessment is that results may be flat. In the recent period, bank stocks rose more than 30% before facing profit-taking that reduced returns to 25-26%. The standout stock that FSS recommends is I-Tail Corporation Public Company Limited, or ITC, which operates a pet food business, with a next-year target price based on fundamentals of 21.30 baht, as net profit is expected to gradually recover.

Impact on assets 6

Semiconductors▲
Consumer Staples▲
i-Tail Corp. PCL
ITC
▲ PositiveCapitalrelevance

FSS names ITC its standout recommended stock with a next-year target price based on fundamentals.

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