SCB Securities (SCBS) recommends focusing on stocks with pricing power and stable margins as it expects the Thai and global economies to transition from reflation to stagflation over the next 3-6 months, triggered by rising energy prices.
The brokerage said the SET Index will reach 1,660 points and move in a range of 1,550-1,780 points.
Sukit Udomsirikul, SCBS’s managing director and chief research officer, said increased fuel prices have resulted in a shift towards tighter monetary policy, with growth forecasts being downgraded and the path of economic growth becoming more uncertain, resulting in the economic cycle transitioning from reflation to stagflation.
He said the Russia-Ukraine war is hampering global economic growth while causing inflation to rise as economic sanctions and uncertainties push energy prices.
These factors will force the US Federal Reserve…
