ASPS reveals 4 groups of 23 stocks, preparing to benefit from interest rates going down. After the long-term bond market It’s harder than the short term. It is a signal for an interest rate cut. Help support the economy – the stock market in the next period. According to statistics, if the bond market forms a BULL FLATTENING pattern, stocks will usually increase within 1 -2 months by approximately 0.7% -1.5%.
Securities analysis of Asia Plus Securities Company Limited (ASPS) revealed that since the beginning of the month, the long-term bond market (10 years) has fallen much harder than the short-term (2 years) (BULLFLATTENING), with money flowing into safe assets in the short term. As a result, short-term stock prices will not be good. This will be followed by an interest rate cut from the central bank, which will be a good sign for the economy and the stock market in the next period.
By US bond yields 10Y -49 BPS. and 2Y -20 BPS. As for Thai bond yields 10Y -26 BPS. and 2Y -5 BPS.
Therefore, if considering the returns received by investors It can be seen that if you invest in BOND 10Y of the United States or Thailand from the beginning of the month There will be high returns of 4.8% and 2.5% respectively, so there is a chance to see some transfer of funds into the stock market. As past statistics indicate If the bond market follows a BULL FLATTENING pattern, stocks usually rise within 1 -2 months by around 0.7% -1.5%.
Meanwhile, the group of stocks that are expected to benefit if interest rates decrease are:
1.Leasing group THANI, MTC, TIDLOR, SAWAD, ASK, AEONTS, BAM, JMT
2. Group of small commercial banks KKP, TISCO
3.Real estate groups SPALI, LH, AP, ORI, QH, SIRI, NOBLE, LALIN
4. Groups that give high dividends (High Yield) NER, ADVANC, SCC, TU, MAJOR
The said group has shares that The research department’s favorites are MTC, TIDLOR, SAWAD, TISCO, LH, AP, SIRI, ADVANC, SCC, TU and MAJOR.