Foreign inflows to brighten Thai investment climate through next year: SET strategy chief

By THE NATION

 

 

Foreign funds will continue to flow into the Stock Exchange of Thailand (SET) into next year as the Covid-19 crisis abates, said the SET’s head of corporate strategy on Tuesday.

 

Soraphol Tulayasathien noted that the Thai stock market was currently rising sharply from funds flooding into emerging markets, including Thailand. The SET maintained its upward trend on Tuesday, rising over 2 per cent.

 

He forecast that funds will continue to flow into the markets next year, driven by Covid-19 vaccination and new US trade policies under Joe Biden. The Thai economy had already entered gradual recovery in the third quarter this year, he added.

 

Positive market signals and fund flows next year would help brighten the investment climate, Soraphol said. He added that the most important factor to monitor in the Thai stock market was earnings of listed companies. Industries that grew this year included the food, construction, paper and petrochemical sectors.

 

He said Covid-19 was now only having a slight affect on Thai stocks. Meanwhile, the baht was being driven up mainly by the influx of foreign investment.

 

Separately, UOB Asset Management (UOBAM) advised that given the current low interest rate, emerging-market stocks were a more interesting investment option than bonds, and debentures more attractive than sovereign bonds.

 

It also pointed to the weakening dollar and strengthening Asian currencies as an opportunity for investment in Asia.

 

UOBAM advised investors to purchase healthcare profitable-innovation stocks. The broker also predicted tourism stocks would recover in the second half of 2021.

 

Source: https://www.nationthailand.com/news/30399310

 

 

-- © Copyright The Nation Thailand 2020-12-09

 

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Foreign inflows?  You mean the same inflows that jack up the Baht?  Gotta put a good spin on this, I guess...

7 hours ago, webfact said:

He forecast that funds will continue to flow into the markets next year, driven by Covid-19 vaccination and new US trade policies under Joe Biden. The Thai economy had already entered gradual recovery in the third quarter this year, he added.

Isn't this what keeps the baht strong?

7 hours ago, webfact said:

Soraphol Tulayasathien noted that the Thai stock market was currently rising sharply from funds flooding into emerging markets, including Thailand.

If so, EM cross rates should be relatively unchanged; anyone watch the THB vs other EM currencies?

On 12/9/2020 at 3:42 AM, webfact said:

Meanwhile, the baht was being driven up mainly by the influx of foreign investment.

 

On 12/9/2020 at 3:42 AM, webfact said:

Industries that grew this year included the food, construction, paper and petrochemical sectors.

 

Products from these industries can't be for export then.