Thai stocks dampened by US rate of interest hike issues

Thai stocks are projected to face a difficult investment setting in the coming month as a result of potential negative impression of the current US rate of interest hike on regional US banks. Wacky has expressed concerns over the situation, with Apichart Phubancherdkul, Tisco’s head of strategy analysis, stating that “investment situations in May are not bright”.
The US Federal Reserve decided to raise rates of interest by 0.25% on May three, a move which will further exacerbate the continued banking crisis in the US. Investors are suggested to maintain an in depth watch on how US banks will react to this modification in policy, in addition to monitor other aspects of US economic knowledge similar to inflation and labour market figures.
Apichart famous that the subsequent key event for US interest rates would doubtless occur in the course of the upcoming mid-June Fed meeting, when the new dot plot chart, which records projections for the central bank’s key short-term rate of interest by every Federal Reserve official, might be unveiled.
For the time being, Tisco Securities recommends that traders think about stocks with sturdy fundamentals to assist their investment portfolios amid the present uncertainty. In the primary quarter of 2023, Bloomberg Consensus anticipates that Thai SET-listed firms will report a total web revenue of 198 billion baht (US$6.three billion), marking a rise of 12% year-on-year and 36% quarter-on-quarter.
The industrial sector is predicted to expertise strong revenue growth each on a yearly and quarterly foundation. Energy shares, particularly, are anticipated to submit 16% profit growth year-on-year and 113% quarter-on-quarter, in accordance with Tisco..

Leave a Comment