Thailand’s SET index forecasted to rise due to return of foreign investments

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Asia Plus Securities (ASPS) forecasted a potential rise in the Stock Exchange of Thailand (SET) index to the 1,500-point level by year’s end, up from approximately 1,380 points last month. This optimistic prediction stems from the expected return on foreign investments and the impact of the recently approved Thailand ESG Fund (TESG) on trading.

 

ASPS anticipates the index to climb further to 1,717 points in the coming year. The brokerage firm attributes this positive projection to several favourable factors, including the cessation of interest rate hikes, easing inflation, and an expected recovery in net profits of listed companies, following this year’s declines.

 

“Global risks have begun to ease, especially in developed economies, and there is a possibility of risks gradually heading downwards from the beginning of the first quarter of 2024. This includes the risk of recession in large economies such as the US and the European Union.”

 

However, ASPS also cautioned investors to monitor geopolitical risks, with the Israel-Hamas conflict being a significant variable. Any escalation into an inter-regional conflict could trigger a rise in oil prices and inflation. Moreover, the potential impact of the El Niño weather phenomenon on cost-push inflation was highlighted.

 

by Alex Morgan 

Picture courtesy of Adam Śmigielski, Unsplash

 

Full story: The Thaiger 2023-12-06

 

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[JoePai]

Global risks have begun to ease

 

Which planet do these people live on !

[Mike Lister]

4 minutes ago, JoePai said:

Global risks have begun to ease

 

Which planet do these people live on !

10 year bond yields are down to 4.2% and equities markets are holding gains, yes, I'd say markets believe risk is reduced.

[nahkit]

Meanwhile, in other news :-

 

"Foreigners net-sold US$95m across TIP markets for the week that ended on December 1, following the net-selling of $80m marked for the previous week. However, for the second week running, the selling was limited to just one jurisdiction—foreigners net-sold $168m in Thailand, but net-bought $38m in Indonesia and $35m in the Philippines. In North Asia, foreigners net-bought $178m in South Korea and $1,206m in Taiwan."

 

Courtesy of Bualuang securities.