2024-01-10 08:02:06
HoonSmart.com>>MTC stocks lead the finance group. Benefit from the downward trend in interest rates, supporting profit recovery. Piloted by the Government Savings Bank to reduce the MRR interest rate, looking at the ROE having passed its lowest point. Better asset quality It is expected that profits this year will grow 24% from loan growth of 14% and credit costs falling. Valuation is not expensive. Finance group statistics often provide outstanding returns in the first quarter. This morning foreigners rushed to buy Thai debt instruments as high as 13.1 billion baht. Reflecting a positive view of Thai debt instruments. and views on opportunities to reduce policy interest rates
At 2:38 p.m., the Finance Group Index was at 3,397.13 points, an increase of 21.72 points or +0.64%, led by MTC shares plus 3.35% to 46.25 baht, an increase of 1.50 baht, trading value 445.78 million baht.
Thanachart Securities said in its afternoon analysis that it recommended “Buy” stocks of Muang Thai Capital Company (MTC) and Ngern Tid Lor Company (TIDLOR), benefiting from the downward trend in interest rates, supporting profit recovery. Today the Prime Minister went to discuss with the Governor of the BoT. on many issues, including interest rate policy The market sees that there is an opportunity to reduce interest rates after this following the downward trend in interest rates. and Thai inflation that continues to shrink Meanwhile, the Government Savings Bank has piloted a reduction in MRR interest rates, looking “positive” to the finance group.
This is because ROE has passed its lowest point and is expected to increase to 17% this year and 18-19% in 2026-77, and asset quality will improve after the end of hard clean up of the balance sheet in 4Q23, including expected profit growth. 24% this year from loan expansion of 14% and lower credit costs. Valuation is “inexpensive.” PE is -1 SD lower than the historical average. Therefore, we recommend “Buy” MTC and TIDLOR, while in group statistics. Finance usually gives outstanding returns in January. Until the 1st quarter
Krungsri Patanasin Securities stated that this morning foreigners rushed to purchase Thai debt instruments to the tune of 13.1 billion baht, reflecting a positive view of Thai debt instruments. and belief in the chance that the BOT will cut policy interest rates Before the Prime Minister will discuss with the BOT governor this afternoon. Viewed as a positive picture, Search for Yield in the next period on the SET side and leasing stocks, high debt, growth
The acceleration in purchasing Thai debt instruments is likely to continue. It is expected that Bond Yield will gradually decrease from this morning at -2 bps to 2.71% and lead to the next phase of Search for Yield. This condition will be positive in many ways.
This causes the difference in returns when investing in the stock market (Equity Risk Premium) to increase, supporting Flow to return to the stock market in the next period.
The current domestic bond problem has a chance of easing due to the Search For Yield situation reducing the negative psychology that surrounds the SET.
Strategically, we still see it as an opportunity to gradually accumulate stocks. Focus on groups that have the opportunity to outperform according to the cycle, such as the hire purchase group, focusing on MTC, JMT, the Growth group, focusing on BE8, and the high debt group, focusing on MINT, CPALL, CPAXT.
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