Target range: The SET Index is projected to trade within a range of 1,434 to 1,545 points in October.

Key factors:

Monetary policy meeting: The Bank of Thailand’s Monetary Policy Committee meeting on October 16th will be closely watch for potential interest rate cut.

Government stimulus: The Thai government’s Bt10,000 cash handout scheme, known as “digital wallet”, is expected to boost consumer spending and support economic growth.

Vayuphak Fund: Investments in Vayuphak Fund, a government-backed mutual fund, are going to provide additional liquidity to the market.

China’s economic stimulus: China’s economic stimulus measures may provide positive sentiment to global equities.

Geopolitical tensions: escalating conflcts between Israel and Lebanon could introduce volatility and uncertainty into global markets.

Investment Strategy: We recommend focusing on domestic plays, particularly retailers that are well-positioned to benefit from the government’s digital wallet scheme.

Top Picks: Our top picks for October comprise BAFS, COCOCO, KBANK, MAGURO, PTTEP, SFLEX, and SISB.

 

Stocks Pick October 2024

BAFS (BUY, Target Bt22.00) Earnings expected to surge in 2H24E

COCOCO (BUY, Target Bt15.00) Expanding capacity to meet growing export demand

KBANK (BUY, Target Bt176.00) Earnings growth expected in 3Q24E

MAGURO (BUY, Target Bt21.40) Lower salmon costs boost earnings outlook 

PTTEP (BUY, Target Bt180.00) Sales volume recovery and potential oil price upside

SFLEX (BUY, Target Bt4.80) Strong demand for flexible packaging amidst M&A momentum

SISB (BUY, Target Bt40.00) High season boosts earnings outlook