Why are ThaiBev, ComfortDelGro top stocks? Analyst explains
Both stocks will benefit from economic reopening.
Whilst the general market was weak on the stock market index in September, ThaiBev and ComfortDelGro were considered top picks amidst their benefits during the economic recovery and scrapping of stringent health rules.
Analyst, UOBKayHian, said this in a brokerage report, adding that the stocks also recorded share price weaknesses, which made their “valuation more compelling.”
These two stocks were considered “Alpha picks” by UOBKayHian after the stocks outperformed the Straits Times Index in September 2022 with a 0.4% month-on-month drop on the market cap-weighted basis against the index’s 2.8% MoM decrease.
BRC Asia and Frencken, however, were removed due to labour challenges as well as negative sentiment for tech stocks.
“We cut losses on BRC Asia as temporary stop-work orders caused by its recent workplace incidents are expected to affect its construction activities and delivery volumes, and we also remove Frencken as the rising interest environment has negatively affected sentiment for tech stocks,” said UOBKayHian.
The general market, except for the banking segment, was weak last month, which reported a 2.8% down MoM.