The SET Index is likely to move higher this month. For one thing, we believe the spread of the Omicron coronavirus variant, which may have peaked, will take a back seat to domestic economic conditions.
The government has been gradually expediting infrastructure projects in the pipeline, which should improve confidence. In the meantime, investors may increasingly bet on stocks with a strong earnings outlook before the curtain on earnings season comes down in early March.
Among the positive factors driving trade are earnings plays. Investors have placed big bets on stocks with a strong fourth-quarter earnings outlook. Pending the release of all results, aggregate fourth-quarter net profit for the SET is estimated to have surged to between 170 billion and 180 billion baht, beating our earlier estimate of 130 billion. If this occurs,…
