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Somkid credits government policies for buoyant stock market


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Somkid credits government policies for buoyant stock market

By The Nation

 

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Economic growth will accelerate next year as confidence and investment increase following an announcement about the general election and amid generous state spending, Deputy Prime Minister Somkid Jatusripitak said on Friday.

 

He was commenting the day after the stock market rose sharply, boosted mainly by the announcement of clearer plans for the election.

 

Somkid said investors were more confident now that the election had officially been scheduled for February, leading to large inflows into the stock market.

 

The SET index rose 2.3 per cent yesterday over the previous day to close at 1,718 points and continued to rise during Friday’s morning trade.

 

Somkid was to meet with senior officials at the Budget Bureau later on Friday to discuss budget disbursements for fiscal 2019, which begins next month.

 

He said government funding for a slate of mega-projects would enter the economy in the first half of the next fiscal year, which runs January-June 2019.

 

The government plans to accept bids for a high-speed railway connecting three international airports and for investments in U-tapao Airport and deep seaports at Laem Chabang and Mab Ta Phut.

 

The market consensus is that gross domestic product will expand by around 4.5 per cent this year and by about the same amount next year.

 

But Somkid predicted GDP growth would reach 5 per cent this year and exceed that next year.

 

He also believes the next government will maintain the economic policies set out by the military-led government.

 

Source: http://www.nationmultimedia.com/detail/breakingnews/30354466

 
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-- © Copyright The Nation 2018-09-14
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2 hours ago, webfact said:

Economic growth will accelerate next year as confidence and investment increase following an announcement about the general election and amid generous state spending, Deputy Prime Minister Somkid Jatusripitak said on Friday.

What is the word for "dubious" in Thai ?   Because we are spending more tax payers money, and we have finally stopped postponing elections, investors feel more assured.  We are great.  Love us.  Clowns.   Don't even know when they sound dubious. 

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I get nervous when the FM said that growth is due to generous state spending based on mega projects which is funded by debts. Seem productivity deemed less important. Growth based on debts is like a house made of cardboard. I hope he has a fall back plan when those mega infrastructure projects don’t generate revenues and profits. 

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2 hours ago, webfact said:

Somkid credits government policies for buoyant stock market

And he is probably quite right. His government is creating policies which help their elite connections whether they be companies themselves, politician and military investors, corrupt civil servants who launder their dirty money and the rest of their influential silvertail friends.

The stockmarket would have little effect on the people outside the junta clique.

 

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I would be very skeptical of anything someone like him says. With the trade war between the US and China set to intensify, plus emerging markets suffering from capital flight as US interest rates go up further and it's economy moving along quite nicely atm...not to mention crappy currencies losing value and the possibility of contagion from places like Turkey or Argentina. I guess we can all be quite sure we aren't being lied to and that he's not just trying to say what he thinks the markets want to hear. Foreign investors (or domestic ones for that matter) can be a jumpy bunch when it comes to where to park their money and the US is looking ever more attractive as time goes by. We'll see, especially if the US Fed puts up rates twice (as expected) by the end of the year.

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I'm not at all sure that the stock markets rise has anything at all to do with Somkid or the junta's economic policies....markets around the world are pretty much rising and falling in sync.

However I do wonder if it is time to invest in the SET? My bank is trying to tempt me to buy their mutual funds as I have expressed anger at the measly returns from bank CDs. As a rule I avoid any investment I don't understand as I always lose money if I do. 

 

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