Q2 earnings will offer reality checkMarket perceptions of the prospects for a second-half earnings recovery in 2020 have outshone anticipation of weak second-quarter numbers, driving the recent recovery on the Stock Exchange of Thailand. Even so, the year-on-year earnings slump in the second quarter of 2020 was vertiginous. The only sectors likely to report year-on-year core earnings growth for the second quarter are:Insurance. Despite heavier loan-loss provisioning, continued strong year-on-year loan growth should enable many firms to post year-on-year profit growth. A rebound in domestic demand in isolation means there is only moderate scope for upside to the consensus SET 2020 earnings projection in the months ahead.

Source: Bangkok Post July 17, 2020 23:03 UTC