ASP Takes 24 Outstanding Stocks, Giving Positive Results if SEF Powers Cabinet Resolution
ASP knocked out 24 outstanding shares, benefiting if SEF passed the cabinet resolution if the SEF or Sustainable Equity Fund replaced LTF, which will be canceled at the end of this year. It is expected that the revolving funds in Thai stocks in 2020 and 2021 will be slightly higher than before. In addition, limiting investment in Thai stocks that are sustainable, have good governance and infrastructure funds. Supporting the proportion of increase in investment in recommended stocks, 20 outstanding shares, the fund increase proportion and 4 new shares worth investing in SEF.
Mr. Paradorn Tierayonpramote Investment Strategy Manager, Asia Plus Securities (ASP) said From past statistics, LTF funds tend to play an important role in the Thai stock market at the end of the year. Investors who choose to invest in LTF tend to buy in the last quarter. Currently, the net asset value of LTFs totaled 3.92 billion baht, accounting for up to 51% of the total value of Thai equity funds.
With the average purchase of LTF in the last 3 years at 6.66 billion baht and the return of LTF in the last 3 years at 4.53 billion baht, the average purchase amount is higher than the average sales. Reflecting that some investors do not sell the fund when due. In 2016, the change in the holding period of LTF from 5 years to 7 years, resulting in the year 2020 and 2021 do not have LTF funds due to hold, reflect that In 2020 and 2021 LTF funds have the same amount of money
so anyway LTF will be canceled at the end of this year and new funds such as SEF or Sustainable Equity Fund are expected to be replaced. SEF has adjusted investment limits and Thai stocks that can be invested. The limit that investors can invest is more than 30% of income but not more than 2.5 hundred thousand baht and set this fund Invest in Thai stocks that are sustainable, have good governance, and at least 65% of the infrastructure fund.
It is expected that money will flow into the SEF fund of around 33.3 billion per year. (Calculated from the average LTF purchase divided by two because the maximum investment limit has been reduced by 2 times to 2.5 hundred thousand baht from the original 5 hundred thousand baht) in 2020 and 2021 without strong selling As a result, the net by 2020 and 2021 had more inflows into Thai stocks than before. (Formerly, net inflows into LTFs averaged at 21.13 billion baht). Therefore, the termination of LTFs did not have a negative impact on Thai stocks in 2020 and 2021.
While the SEF fund has limited investment in Thai stocks. Out of 780 Thai stocks, only 53 Thai stocks in the SETTHSI index and 8 infrastructure funds have resulted in more inflows into each stock. Asia Plus Securities has speculated that 20 stocks are likely to be funded. Add weight to the investment the most If SEF funds are used to replace LTF as follows
1. AOT or Airports of Thailand Public Company Limited
2. PTT or PTT Plc.
3. ADVANC or Advanced Info Service Plc.
4. SCC or The Siam Cement Public Company Limited
5. DIF or Digital Telecommunications Infrastructure Fund
6. PTTEP or PTT Exploration and Production PLC.
7. TRUE or True Corporation Plc.
8. CPF or Charoen Pokphand Foods Plc.
9. EA or Pure Energy Plc.
10. SCB or Siam Commercial Bank Public Company Limited
11. PTTGC or PTT Global Chemical Public Company Limited
12. CPN or Central Pattana PCL.
13. HMPRO or Home Product Center Plc.
14. RATCH or Ratchaburi Electricity Generating Holding PCL.
15. DTAC or Total Access Communication Public Company Limited
16. BEM or Bangkok Expressway and Metro PLC
17. TOP or Thai Oil Public Company Limited
18. BTSGIF or BTS Rail Mass Transit Growth Infrastructure Fund
19. JASIF or Jasmine Broadband Internet Infrastructure Fund
20. DELTA or Delta PLC. Electronics (Thailand)
However, Asia Plus Securities views that SEF has the opportunity to invest in 4 more shares that LTF has never invested in, such as
1. PTG or PTG Energy Public Company Limited
2. JWD or JWD Co., Ltd. InfoLogistics
3. THCOM or Thaicom Plc
4. PM or Premier Marketing Plc.
It is advisable to follow up on the progress of SEF funds and stocks in the SETTHSI index as they are likely to be modified to match the set policies of this index.