Thai shares are projected to face a difficult investment environment in the coming month because of the potential negative influence of the latest US interest rate hike on regional US banks. Tisco Securities has expressed concerns over the situation, with Apichart Phubancherdkul, Tisco’s head of strategy research, stating that “investment situations in May are not bright”.
The US Federal Reserve determined to boost interest rates by 0.25% on May 3, a transfer that may additional exacerbate the continued banking disaster within the US. Investors are suggested to keep a close watch on how US banks will react to this change in policy, in addition to monitor other aspects of US financial knowledge similar to inflation and labour market figures.
Apichart noted that the subsequent key event for US rates of interest would probably happen through the upcoming mid-June Fed assembly, when the model new dot plot chart, which data projections for the central bank’s key short-term interest rate by every Federal Reserve official, shall be unveiled.
For the time being, Tisco Securities recommends that traders think about shares with sturdy fundamentals to assist their funding portfolios amid the present uncertainty. In the primary quarter of 2023, Bloomberg Consensus anticipates that Thai SET-listed companies will report a total net revenue of 198 billion baht (US$6.3 billion), marking a rise of 12% year-on-year and 36% quarter-on-quarter.
Guilt-free is predicted to experience strong profit progress both on a yearly and quarterly foundation. Energy stocks, in particular, are expected to submit 16% profit development year-on-year and 113% quarter-on-quarter, according to Tisco..