Focus on stocks linked to economic recovery

The roller-coaster ride for the SET is expected to continue on the back of both domestic and overseas factors. Russia’s war on Ukraine is becoming protracted, while the next Federal Reserve meeting in mid-June has investors on edge given hawkish comments favouring a 50-basis-point rate increase.

We believe market sentiment will improve once investors digest the Fed’s policy decision on June 15. As well, the lifting of entry restrictions for foreign tourists and the weak baht, which has attracted more foreign funds, will provide support for the Thai bourse.

Among the positive factors, authorities are moving closer to declaring Covid-19 an endemic disease. Relaxed entry rules will bode well for the tourism sector and hence Thai equities. Stocks that stand to benefit — such as…