Profit forecast for firms listed in SET expected to improve next year
An expert at Tisco Securities said he expects other analysts to improve their profit forecast for companies listed in the Stock Exchange of Thailand (SET) next year as listed companies showed improvements in its third-quarter performance.
Apichat Poobunjirdkul, Tisco Securities' senior strategist, said listed companies' third-quarter performance stood at Bt147 billion, down 31 per cent year on year but up 23 per cent quarter on quarter as economic activities have almost returned to normal now that the government has eased lockdown measures and launched schemes to stimulate the economy.
"Of the listed companies, 52 per cent performed better than expected, 20 per cent performed as expected, while 28 per cent did worse than expected,” he said.
He added that he expects other fellow analysts to improve their profit forecast for listed companies next year, as SET has been gaining from improvement in Thailand’s third quarter gross domestic product (GDP) performance, signs of export recovery, Joe Biden’s win in the US presidential elections and positive news about the Covid-19 vaccine.
“In the third quarter, Thailand’s GDP contracted 6.4 per cent year on year, which was better than securities companies’ and the market’s expectation of 10 per cent and 8.8 per cent contraction, respectively. The global economy will also gain from Biden’s presidency,” he added.
Apichat went on to say that Tisco Securities still maintains its SET forecast at 1,370 points this year and 1,500 points next year.
As a short-term investment strategy, he advised investors to sell when SET rises and buy back when it falls.
"We expect there to be a limited upside for SET as uncertainty over political unrest, especially the anti-establishment protests and charter amendment will pressure the index until next year,” he added.
