SET expected to pass 900 pts this year

BANGKOK (NNT) -- Trinity Securities Company predicts the Thai stock index is likely to reach 900 points by the end of the year as capital continues to flow into the market.

Trinity Securities’ executive director Vajiralux Sanglerdsillapachai said the forecast was based on the record amount of foreign cash inflow of 800 million USD during February and March.

The investment sentiment should stand between 727-836 points in the second quarter and between 676-900 points at the end of the year. The main influence is the amount of foreign currencies invested in the Thai stock market.

Investment capital will continue to flow in if the economy continues to recover as expected. The gross domestic product in the first quarter is predicted to grow 6.6%.

The continual increase in the profits of registered firms has caused the SET index to adjust up, already surpassing Indonesia’s index in the last 10 days.

The SET index has risen by 6.53% since the beginning of this year while that of Indonesia has increased by 7%, said Ms Vajiralux.

However, the political conflict is still investors’ main concern. Any instigated violence or a House dissolution which would put the country’s administration on halt would result in an economic downturn and fleeing of foreign investment.

Ms Vajiralux added that the direction of the SET in the latter half of the year is still to be monitored while the index is prone to fluctuation as concerns over rising interest rates and the economic crisis in Europe still exist.

-- NNT 2010-03-24

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JP Morgan: Thai stock market number 1 in SEA

BANGKOK (NNT) -- JPMorgan reports that the Thai stock market has the best performance in the Southeast Asian region, believing that the index will increase by 10% in the next six months.

JPMorgan said the economic recovery would help increase the company’s first quarter income and the appreciation of the baht would help raise the stock market’s value.

Fears and concerns are also reduced as the domestic political situation has subsided, attracting more investors, according to the investment firm.

According to reports, the Thai baht has appreciated by 2.2%, ranking third in Asia in terms of yields. The Thai economy, which has reflected a positive recovery, grew by 5.8% in the fourth quarter of 2009 and is expected to reach a 4.5% growth in 2010.

JPMorgan suggested investors increase their investments in the Thai stock market due to its strong foundations.

Meanwhile, the export figures in February have increased for four consecutive months, following the fourth quarter growth.

Foreign investors have continuously bought Thai stocks since 22 February 2010 to 23 March 2010 with a combined value of 42 billion THB.

-- NNT 2010-03-24

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