SET expected to rise sharply after Biden’s win

Amonthep Chawla, head of research at CIMB Thai Bank, said Thailand would benefit from rising demand for imports in the US – especially electronic and automotive parts, rubber and food – as Biden's policies will help boost Americans' income.

"Hence, Thailand needs to consider joining the Comprehensive and Progressive Agreement for Trans-Pacific Partnership [CPTPP] as soon as possible, otherwise the country would lose benefits from China's production relocation," he said.

However, he said the baht would strengthen further from its current range of 30.50-30.60 against the dollar because the US debt is likely to grow in the long term.

Therdsak Thaveeteeratham, executive vice president at Asia Plus Securities, said the global economy including Thailand would be buoyed by Biden's lenient trade measures, while foreign funds are likely to flow into Asian stock and bond markets after the Biden administration raises corporate taxes, meaning US stocks will be less attractive among investors.

“If Thailand’s political tensions don’t escalate, we expect the SET to rise to around 1,300 points by the end of this year, before hitting 1,450 points next year if a Covid-19 vaccine is developed the end of this year," he said.

He added that shares in renewable energy-focused generators, such as GULF, GPSC, EA and BGRIM, would gain a boost from the US Democrats' clean energy policy.

"Meanwhile, we still recommend that investors buy six large stocks – SCC, DELTA, CPF, HMPRO, STGT and BAM– whose profits are likely to increase next year," he added.

Wikij Tirawannarat, director of individual customer research at Bualuang Securities, predicts logjams in US policymaking since Republicans still control the Senate, but is bullish on the prospects for Thai stocks.

"We expect the SET to hit 1,400 points next year as Thai political unrest eases, listed companies’ profits rise 50 per cent, and foreign funds flow into Asian and emerging markets," he said. He forecast the SET would rise to around 1,340 points by the end of this year as the US election result is still unclear.

Thidasiri Srisamith, chief investment officer at Kasikorn Asset Management, said the SET had already priced-in the Biden presidency with a 5 per cent rise.

"However, we expect the index to hit 1,500 points by the end of next year on hopes of a Covid-19 vaccine. If the Covid-19 situation resolves, Thailand will be able to welcome more tourists," she said, adding that the country's revenue from tourism normally accounts for 13 per cent of its GDP.

She recommended that investors buy stocks not vulnerable to impact from the economic slowdown and with high fundamentals – such as utility, retail and finance stocks.

Nattapong Hirunyasiri, chief executive of MTS Gold Group, expects the gold price to fluctuate between US$1,920 and $1,960 per ounce and between Bt27,800 and Bt29,000 per baht weight this year.

"However, the gold price will hit $2,000 per ounce if it is still rising at $1,940 per ounce," he forecast.

Tada Phutthitada, president of The Thai Bond Market Association, said regardless of who is the US president, the Thai bond market will gain positive sentiment from the US policy to inject funds into Asian markets, adding that foreign funds mostly flow into bonds issued by governments and central banks.

"In the last two days, foreign investors have made net buys of up to Bt10 billion in bonds … so this is a chance for the government to issue more bonds to raise more funds," he said.