JPMorgan sees Thai stocks as the most attractive in Southeast Asia
Strong recovery of Thailand’s tourism, with an expected influx of Chinese visitors, and strong domestic demand for consumer products have made the Thai stock market the most attractive in Southeast Asia, according to JPMorgan Chase & Co, an American multinational financial services company.
Jakkapun Pornpunnarath, JPMorgan’s head of Thai equity research, said that the Stock Exchange of Thailand (SET) has become the top pick for JPMorgan in Southeast Asia.
He pointed to robust trading of Thai stocks ahead of the next general election later this year and the strong operating performance of many listed companies.
The JPMorgan executive said that a strong Thai baht, growing in tandem with the tourism recovery, should enhance returns for equity investors.
Jakkapun was speaking in an interview with Bloomberg news agency, which published its report on Thursday.
JPMorgan estimated that Chinese tourists would help double Thailand’s tourism revenue to US$39 billion (1.36 trillion baht) this year, accounting for 6% of the country’s gross domestic product.
The multinational financial giant also predicted that as many as 26 million foreign tourists would come to Thailand this year, which is about 65% of the 40 million visitors who came to Thailand in 2019, the year before the global tourism industry was hit by the Covid-19 pandemic.
According to JPMorgan, the SET Index is likely to increase by 7% this year to reach a new high of 1,800 points.
In terms of sectors, JPMorgan remains overweight on consumer products, luxury goods, and healthcare.
