Banks and construction stocks may fall, AIS stocks to take a hit

Wednesday’s decision by the constitutional court to accept a lower house petition to rule on a much-delayed budget bill could adversely affect the market on Thursday.

Shares within the banking and construction sector could take a hit.

The stocks that could be affected by the news from the Supreme Court include CK and STEC while bank shares such as BBL, SCB, KBANK, and KTB could take a hit if clients from the construction sector do not take out their expected loans. The Fiscal Policy Office has also announced a cut of GDP growth from 3.3 per cent to 2.8 per cent.

The Stock Exchange of Thailand (SET) rebounded by 11 points yesterday, thanks to institutional buyers buying up blue-chip stocks which had fallen. Siam Cement’s results showed better than expected returns on Wednesday and WHA is expecting its share of profits to increase by 15 per cent in 2020 with an EBITDA margin of 40 per cent.

Other companies showing good forecasts for the year include ORI which is planning a 20-billion-baht expansion which could lead to a 30 million baht profit this year. CI boasts that they have already sold 10 units in its Bang Na project worth around 300-400 million and SPA hinted that they will open a new branch next month which should help increase their profit by 20 per cent this year. 

Brokers are recommending people to buy today. KGI Securities expects good or better than expected 2019 results from other companies as well with the upside from new projects that have been announced.

Tisco Securities also recommended shares of out-of-home media by pointing out a project to increased ad space within 7-11 and shares of media companies that would cover the Tokyo Olympics. These include Synergy, VGI and MACO with an expected profit of more than 25 per cent.   

AIS shares to take a hit
ADVANC (ADVANCED INFO SERVICE) shares could take a hit from a court ruling.

AIS lost the case against TOT at the arbitration court and was ordered to pay 31.08 billion baht. The TOT case against AIS pertains to contract changes on revenue sharing made in 2002. AIS has said it disagrees with the ruling and will take the case to the Central Administration Court.

Share prices could be adversely affected by the news.

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