Market View

Therdsak Thaveeteeratham
Executive Vice President / Research 
Asia Plus Securities

We target the minimum SET Index at 1,817 points in 2018, which could be driven by listed companies' estimated total net profit of Bt1.12 trillion or Bt113.53 per share, up 14.53 per cent yea-on-year.  Commercial banks, retailers, insurers, transportation firms and ICT companies are expected to outperform the market in terms of EPS growth. Market PER is set at 16 times, the normal level.
Current market corrections will likely be a good time for portfolio adjustment and accumulation of strongfundamental stocks. 
Investment Theme is the new round of the country's investฌment trend and will be positive to extended industries from industrial estates (AMATA & WHA), construction (UNIQ & STEC) to commercial banks with unusually low valuations (BBL & SCB).

Prakit Sirivattanaket
Vice President
Kasikorn Securities
Growth in Thai exports and tourism continued in October with rises in public spending and a recovery in domestic investment. Consumption is expected to expand in November given the shopping tax incentives.
Industrial estates, construction, banking, retail, hotel and restaurant groups are expected to outperform the market.
On Nov 30, a meeting between Opec & nonOpec countries agreed to extend the period of cooperation to reduce crude production by 1.8 million barrels per day to the end of 2018. This will be instrumental in reducing crude oversupply towards a market balance next year as expectd by Opec while sustaining oil prices at a high level. KS Research forecasts Dubai Crude price at US$60 per barrel next year. The upward crude price will be positive to the prices of soft commodities with relatively high correlations such as rice (78 per cent), rubber (60 per cent), soybean (74 per cent) and soybean meal (60 per cent). 
As a result, the country's agricultural product prices (rice and rubber) will not likely fall below the current levels.
As for soybean and soybean meal, KS Research expects TVO (KS Research does not issue its analysis) to gain high benฌefits and buy for short-term speculation is recommended.