BANGKOK (NNT) - Chairman of the Federation of Thai Capital Market(Fetco) Paiboon Nalinthrangkurn believes the Thai stock market will continue to see an inflow of over 10 billion baht per month. This may lead the stock market to reach 1,870 points in 2022.

 

Mr. Paiboon said Asian countries will be targets of these fund flows as global investors will need to adjust their asset allocations as large countries’ central banks are raising interest rates and launching other measures to curb inflation.

 

Foreign capital has been entering the Thai stock market for 4 - 5 months already and will continue as the Thai market is expected to remain the most liquid stock market in the region, supported by the Bank of Thailand’s policy to maintain a low-interest rate.

 

Compared to other countries, Thailand’s inflation rate is still relatively low. Meanwhile, the government can borrow more in case of emergency, as it already lifted the public debt ceiling from 60% to 70%.

 

Mr. Paiboon said Omicron is not a concern because investors experienced and should be able to handle the effects of the virus. As most of the population is vaccinated, Mr. Paiboon expected Omicron will eventually be contained. However, investors need to keep an eye on the world situation because more variants may emerge.

 

For the tax on share sales, Mr. Paiboon said Fetco will meet with its members soon to gather opinions and submit them to the Finance Ministry for consideration to review the new tax policy.

 

He stressed that the policy will reduce the Thai stock market’s competitiveness and its liquidity by about 30%.

 

According to Fetco’s Investor Confidence Index, for the next three months, the index is forecast to be around 129.53, down 4.2% from the previous month, but remains in the bullish zone.

 

The main factors supporting market sentiment are the economic recovery, prospective fund inflows, and in-stock-market companies’ earnings reports, while the spread of Omicron, international conflicts, and the upcoming meeting of the Bank of Thailand’s Monetary Policy Committee have been pulling down sentiment.

 

The most attractive sector is banking, while the least attractive is tourism and leisure.

 

-- © Copyright NNT 2022-01-07

 

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Lol, I'm pretty sure the newly touted tax will prevent this from happening.

Thanks. Pass!

6 minutes ago, ukrules said:

Lol, I'm pretty sure the newly touted tax will prevent this from happening.

Won't help, I'm sure.

11 minutes ago, snoop1130 said:

The most attractive sector is banking, while the least attractive is tourism and leisure.

Hear! Hear!

Let's hope the forecast is better than the one about tourism.

Emerging markets (with mention of ASEAN countries) are where most trading group looking for big gains in 2022.

14 hours ago, snoop1130 said:

The most attractive sector is banking,

Why are Thai banks attractive with all the bad press about lost money/poor service/corruption?

30 minutes ago, mikebell said:

Why are Thai banks attractive with all the bad press about lost money/poor service/corruption?

As always media reports tend to sensationalize and generalize. I haven't done my due diligence lately but my impression is that many banks are squeaky clean. It's also my impression that the government supports the banks in ways that are not completely out in the open. Just my opinion. 

So I should buy stock in Thai Airways?

Very misleading Headline 

Analysts is Plural

This is a guesstimation by an Analyst - singular.

This optimistic forecast is from someone high up in the Thai financial establishment. I'd prefer it to come from sources like Bloomerg, the Wall Street Journal, the Financial Times, Seeking Alpha etc.

 

Undeniably, the Thai stock exchange has a lot of catching up to do compared to the US and even Europe.

Just keep your damned Baht down—and you may get your wish.  Push the Baht up again—and it’s over for the economy.

3 hours ago, JackGats said:

This optimistic forecast is from someone high up in the Thai financial establishment. I'd prefer it to come from sources like Bloomerg, the Wall Street Journal, the Financial Times, Seeking Alpha etc.

 

Undeniably, the Thai stock exchange has a lot of catching up to do compared to the US and even Europe.

Over the last year my best investments in Thailand brought a better return than my investments in UK Europe and USA

10 hours ago, mikebell said:

Why are Thai banks attractive with all the bad press about lost money/poor service/corruption?

Maybe because their  shares are cheap?

26 minutes ago, wordchild said:

Maybe because their  shares are cheap?

If stocks are 'cheap', then there's probably a good reason for that. (But no, doesn't always work the other way round; if stocks are 'expensive', then not necessarily due to good reasons.)

3 hours ago, Peter pop said:

Over the last year my best investments in Thailand brought a better return than my investments in UK Europe and USA.

Aren't we cheating a bit here?  Best investments somewhere should be compared with BEST investments somewhere else.

 

Joking aside, I fear my gains on my Thai stocks may come to nothing if the Baht weakens for good. On the other hand transfering euros will give me more Bahts. I no longer feel like increasing my stakes in TH though. No good owing too money in a country that locks me out half the year.

On 1/8/2022 at 8:58 AM, jacko45k said:

So I should buy stock in Thai Airways?

Yes, all of them ????

8 hours ago, Dumbfounded said:

Yes, all of them ????

Never got a refund so a little loathe to invest to be honest!