Brokerage Targets 4 Stocks to Benefit from Thai Help Thai Plus Program

Globlex Securities (GBS) estimates Thailand's stock market index will trade sideways this week between 1,510-1,560 points, buoyed by falling crude oil prices following positive US-Iran peace negotiations and continued strong foreign investment flows into Thai businesses. Foreign direct investment reached over 129 billion baht in the first four months of the year, up 124% year-over-year, with exports expanding 17% in the first quarter, prompting EXIM Bank to raise Thailand's full-year export forecast to 7% from the previous 0-2% projection.

Global economic conditions are supported by US jobless claims falling to 209,000, below analyst expectations, and US assurances it will not use military force to seize Greenland. However, market risks remain including Iran's decision to suspend enriched uranium exports and renewed geopolitical tensions as the US pursues regime change in Cuba and deploys 5,000 additional troops to Poland.

Domestically, Thailand's real estate sector continues facing pressure from higher interest rates and stricter lending standards, with mid-to-lower tier condominium transfers slowing while upper-tier horizontal property sales remain resilient. Investors should closely monitor this week's important economic data including international trade reports, industrial production indices, Bank of Thailand's economic assessment on May 29, US consumer confidence and employment figures, Q1 GDP estimates, and China's industrial profit reports.

Globlex research director recommends a selective stock-picking strategy focusing on two main groups: stocks benefiting from the MSCI Global Small Cap index rebalancing effective May 29 (recommending MRDIYT and TFG while avoiding TOA which is being removed), and retail and consumer stocks positioned to gain from the Thai Help Thai Plus stimulus initiative.