Thai Stock Market On A Rising Trend

[george]

Thai stock market on a rising trend

BANGKOK: -- The Stock Exchange of Thailand (SET) composite index which successfully closed above 700-points at the end of the week is expected to continue advancing next week, according to a report issued by Kasikorn Research Centre.

On Friday, the SET index closed at 716.44 points, up 3.07 per cent from a week ago, the report said. The daily average turnover this week also rose to about Bt15.28 billion from Bt10.74 billion last week as investors bought blue chips in bank, energy and property sectors.

The Market for Alternative Investment (MAI) index on Friday closed at 210.13 points, an increase of 1.22 per cent from the same period last week, the report said.

Kasikorn said the SET index could continue rising next week as most investors are awaiting the release of US employment data and watching movements of regional stock markets.

Local factors which are also being watched by investors include a release of Thailand's consumer confidence index for April, due out on Thursday, first quarter corporate earnings statements and political developments.

Kasikorn Securities has forecast that the support level for the SET next week is around 696-710 points while the resistance level is between 722-727 points.

Thailand's stock market as well as banks will be closed for the Monday holiday in substitution for Coronation Day, May 5.

--TNA 2007-05-05

[teejay]

Nobody on the TV financial forum replies unless it's to complain or doomsay, which this ariticle doesn't really allow. No replies....

[samran]

no, people just don't know how to bang on about the evils of share price manipulation....

[cclub75]

Nobody on the TV financial forum replies unless it's to complain or doomsay, which this ariticle doesn't really allow. No replies....

What do you want us to say ?

Do you think it's a good news ? Sure, for people who own shares on the SET market. Personally, I don't. So I don't really care.

If foreign investors are fool enough to put they cash on a market that is small, subject to many manipulations (even the thais authorities are launching from time to time enquiries. And sometimes they gave some fines), in a country with extremely high political uncertainty, and a coming economic crisis (that can be seen already on the results of Q1 for some listed companies) and with a currency that's highly unpredictable... fair enough ! And even, I say "respect !".

And good luck.

[No beleeeeve!]

Okay, I'll reply.

I would not at the time invest in the Thai stock market. No way, no how. I invest, even speculate, but I don't gamble. If you want to invest in Asia, one must at least consider the emerging market of China. Catch the tail end of the growth wave.

If you are more passive, invest in multinationals doing business in Asia.

On the frontier market front, Vietnam is the second fastest growing economy in Asia. Many predict a correction down in their market in 2007, but that presents a great time to buy. There are a few mutual funds based in Vietnam that are an option. There are some IPOs this year too.

Myself, I invest in China and companies based in the US who do business in Vietnam. As this year plays out, I will be buying into companies based in Vietnam depending on how or if the correction plays out. I like countries that have a Communist political system coupled with a capitalist economy. You get the best of both worlds.

State owned companies protected by protectionist government policies pumped up financially by the government. Win-Win! China and Vietnam.

There's an Indonesia fund that has been doing well too although I don't have a position in it so I haven't reseached it much.

So, overall, there are many opportunities to invest in Asia with much better returns that wil allow you to sleep better at night than the instability of the Thai market.

I hope that changes though!

[midas]

Okay, I'll reply.

I would not at the time invest in the Thai stock market. No way, no how. I invest, even speculate, but I don't gamble. If you want to invest in Asia, one must at least consider the emerging market of China. Catch the tail end of the growth wave.

If you are more passive, invest in multinationals doing business in Asia.

On the frontier market front, Vietnam is the second fastest growing economy in Asia. Many predict a correction down in their market in 2007, but that presents a great time to buy. There are a few mutual funds based in Vietnam that are an option. There are some IPOs this year too.

Myself, I invest in China and companies based in the US who do business in Vietnam. As this year plays out, I will be buying into companies based in Vietnam depending on how or if the correction plays out. I like countries that have a Communist political system coupled with a capitalist economy. You get the best of both worlds.

State owned companies protected by protectionist government policies pumped up financially by the government. Win-Win! China and Vietnam.

There's an Indonesia fund that has been doing well too although I don't have a position in it so I haven't reseached it much.

So, overall, there are many opportunities to invest in Asia with much better returns that wil allow you to sleep better at night than the instability of the Thai market.

I hope that changes though!

Good points No beleeeeve - particularly the bit " but I don't gamble " ! SET has had its day

[Abrak]

If you look at the recent rally of the Thai stockmarket it is all about relative performance and valuation.

In 2006, China and Vietnam were the hot plays - China was up 61% and Vietnam was up over 100%. Meanwhile The Thai SET actually fell and was the second worst performing stockmarket in the world after Saudi Arabia. Thailand is also a long term laggard, trading at about a third of its Jan 1994 high of 1786 (in US dollar terms).

China and Vietnam might be growing very fast but they are also trading on staggering valuations - Vietnam is on anything between a PE of 35x-70x depending on who you talk to. Thailand trades on a PE of 8-10x.

So with a number of the regional stock markets having performed so well for so long - Philippines is near a 10 year high, Indonesia trading near an all time high, Hong Kong same same... regional fund managers are switching some of their money out of the strong performers into the laggards - Thailand is the prime beneficiary. (The other markets are especially vulnerable to profit taking - in Thailand there are no profits to take.)