Market unease shouldn’t scare off investors, says wealth manager

By The Nation

 

 

The index on Friday (November 29) closed at 1,590.59, 0.45 per cent down from the previous week, with daily turnover at Bt56.3 billion, up 23.2 per cent.  A lower boundary for this week is expected of 1,575 or 1,550 and an upper bound of 1,605 or 1,615, according to Kasikorn Securities.

 

Retail investors are being urged to invest in Thai stocks via RMF or LTF schemes despite high volatility in the market.

 

“It’s worth investing because you at least get tax deductions on your investments in retirement mutual funds [RMF] and long-term equity funds [LTF],” said Pipat Luengnaruemitchai, assistant managing director and co-head of the CIO office at Phatra Wealth Management.

 

Capital gains can also be made in the long run since equity investment has been shown to offer higher returns than bank deposits or investments in bonds, he said.

 

There is a “high chance” the index will return to about the 1,700 level, he said, blaming the current downturn in the stock market partly on listed firms performing more poorly than expected.

 

Corporate earnings are expected to rise next year, with market consensus agreeing that earnings-per-share growth would reach 10 per cent.

 

The Finance Ministry is considering a new long-term investment fund scheme because the LTF will expire at the end of this year.

 

The Stock Exchange of Thailand Index last week closed below the supported level of 1,600 as foreign investors sold on concerns partly about bleak prospects for the US and China completing a trade deal.

 

The index on Friday (November 29) closed at 1,590.59, 0.45 per cent down from the previous week, with daily turnover at Bt56.3 billion, up 23.2 per cent. 

 

A lower boundary for this week is expected of 1,575 or 1,550 and an upper bound of 1,605 or 1,615, according to Kasikorn Securities.

 

The market dropped after US President Donald Trump signed off on legislation supporting democracy in Hong Kong that would allow Washington to impose sanctions on rights abusers in the Chinese enclave, which has seen pro-democracy protests over the past five months. 

 

The protests and the US legislation have both angered Beijing.

 

Source: https://www.nationthailand.com/business/30378964

 

-- © Copyright The Nation Thailand 2019-12-02

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And no mention of an overpriced Baht? Domestic consumption alone cannot drive this economy...

5 hours ago, webfact said:

Capital gains can also be made in the long run since equity investment has been shown to offer higher returns than bank deposits or investments in bonds, he said.

Yeah, but not as good as the pyramid scheme I just wisely invested my money in

20 minutes ago, Isaan sailor said:

Domestic consumption alone cannot drive this economy...

???

The government has been desperately stimulating domestic consumption ( a short term solution measured in weeks). Local tourism stimulating measures have somewhat failed to spur private consumption. In November 2019 consumption was flat but substantially down from 2018.

https://www.nationthailand.com/business/30378905

 

What else would a WEALTH manager say, its all GOOD news.

I thought all Nigerian Princes had been expunged just a few home grown ones to go????

The dire performance of Thai investment funds, just 2 below are depicted for example, many are going down since the end of 2017 and it feels as if the low point has not yet been reached.

 

It is no wonder the Govt pension fund is now considering investing outside the country.

 

 

They are not interested in international norms or rules-they think they can make their own, and That Thailand operates in a vacuum-faulty and delusional thinking