Krungsri says US CPI to weigh on Saturday, names DELTA, PTTGC, SCC as top picks

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Summary · why it matters

Krungsri Securities said high US bond yields remain a drag on the market. This week the market is focused on the September 26 CPI inflation report, with the market expecting plus 3.6% year-on-year and plus 0.6% month-on-month, based on energy accounting for roughly 6.0-6.5% of the US inflation basket and September 26 crude oil prices rising 16% month-on-month, which suggests the market has already priced in some of the risk. The market is also waiting to assess the war situation, where news flow remains volatile, with the main view still that the war has passed its peak but will drag on at least until before the US midterm elections. Domestically, the market is waiting to monitor flooding, which is expected to have limited impact on the market if it is not severe. For this week's top picks, it recommends DELTA, PTTGC and SCC. DELTA has a 2027 forecast target price of 320 baht on the accelerating AI investment cycle. PTTGC has a Bloomberg consensus target price of 63 baht on upside from building synergies through a petrochemical joint venture with SCC. SCC has a 2027 forecast target price of 320 baht on upside from building synergies through a petrochemical joint venture with PTTGC. Last week's top picks, DELTA, PTTGC and KBANK, delivered an average return of plus 2.43% versus plus 0.38% for the SET.

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