Wed, December 08, 2021

business

Automotive, product manufacturer, retail shares benefit from stimulus packages


Automotive, product manufacturer and retail shares are currently benefiting from the government’s measures to stimulate domestic consumption, experts said.

The government had launched various measures to stimulate consumption and compensate for a lack of income from overseas, such as the “Rao Tiew Duay Kan” (We Travel Together) scheme, raising the Bt500 monthly payment for state welfare card holders and introducing the “Khon La Khrueng” (Let’s Go Halves) shopping scheme and “Shop Dee Mee Kuen” (Shop and Payback) scheme.

Asia Plus Securities assistant vice-president Paradorn Tiaranapramot said the government’s “old car for new car” scheme, currently under consideration, would benefit automotive shares, such as AAPICO Hitech Pcl (AH), Somboon Advance Technology Pcl (SAT) and Thai Stanley Electric Pcl (STANLY).

In addition, he said the second phase of the Khon La Khrueng scheme, which the Finance Ministry confirmed would start on January 1, would benefit product manufacturer shares, such as Osotspa Pcl (OSP), Taokaenoi Food & Marketing Pcl (TKN), Sappe Pcl (SAPPE) and Thai Vegetable Oil Pcl (TVO).

Meanwhile, the Shop Dee Mee Kuen scheme and the launch of the iPhone 12 would benefit retail shares, such as MK Restaurant Group Pcl (M), Central Retail Corporation Pcl (CRC), Com7 Pcl (COM7), SPVI Pcl (SPVI) and Berli Jucker Pcl (BJC).

A Yuanta Securities analyst said retail companies’ same store sale growth is expected to increase in the fourth quarter from the stimulus measures.

Published : December 02, 2020

By : The Nation