Innovest

Bangkok, Innovate Long-term investment recommendations Focus on debt instruments, expect fund flow to return in the second half of the year, estimate SET Index at 1,650-1,700 points. Mr. Sukit Udomsirikul, Managing Director, Research Department, Innovest The price is much lower than its value, which is considered a good opportunity for long-term investors. The first half of the year is an investment with the expectation of returns in the second half of the year. Asian stock markets are more attractive than leading stock markets such as the United States and Europe because their economies are still growing at a high rate. The economies of developed countries such as the United States and Europe are entering a recession in the first half of the year and will cause the Fed to reduce interest rates by 1% in the first half of the year, while the Chinese economy will recover gradually due to continued subsidy monetary and fiscal measures. Inflation rate has decreased. By having the opportunity to see More foreig n capital is flowing into Asian stock markets as well. If the US dollar weakens, it is expected that there will be a chance of seeing fund flows flowing back into Thailand in the 3rd and 4th quarters. However, it is entering an economic cycle where growth is likely to be lower than its potential, causing central banks around the world to except Japan We will start to see more reductions in policy interest rates. Therefore, there are recommendations for asset allocation for this year, focusing on investing in high quality debt instruments. Both government bonds and private bonds with investment grade ratings or higher will benefit from the trend of lower interest rates in the future. Focus on investing in Asian stocks, including Thailand, which are more interesting than developed markets. from the recovering economy Meanwhile, investment in world stocks during 2H24 began to improve as the economy began to recover. It will focus on Value and Cyclical stocks and also diversify into alternative assets such as go ld and REITs. While Mr. Sittichai Duangrattanachaya, senior strategist for the Thai and foreign stock markets Investment Strategy Department Innovest It is expected that the US economy There is a possibility of a recession. But Thai and Asian stocks where the economy is starting to recover will be more interesting to invest in than stocks in developed markets. As for Thailand, it is seen that the Thai stock market will increase. But fluctuations will be there throughout the year. Supporting factors come from the budget that is being gradually disbursed. and government stimulus measures Sustainable stock groups (ESG) will be important. and has received increasing interest in investment As for foreign stocks, we recommend investing in stocks related to technology themes that benefit from the use of AI, which are suitable for long-term investment. The semiconductor group is in an up cycle. The recovery is still interesting in the first half of 2024. In addition, there is an emphasis on investing in good quality stocks whose prices have dropped sharply. Estimate the SET Index target at 1,650-1,700 points, with important purchase points at 1,400-1,450 points, pointing out outstanding stocks in 2024, emphasizing focus on quality and recovery of operating results, including AMATA BBL BEM BDMS CPALL CRC GULF OR SCC and SCGP . Source: Thai News Agency