Set: Bullish Forecast For Local Bourse

[george]

Bullish forecast for local bourse

BANGKOK: -- Listed companies are under pressure this year to raise fresh capital for further business expansion, a factor that will weigh down on the stock exchange's recovery.

Despite this negative factor, the Thai market is likely to rise between 20 and 25 per cent |this year over 2003, Dr Kong-kiat Opaswongkarn, manag-|ing director of Asset Plus Securities, told a seminar on the prospects of the stock market and the economy in the Year of the Monkey.

Last year the Thai market rose 117 per cent, and was one of the world's best-performing stock exchanges.

On Friday, the market closed at 695.08, compared to highs of more than 800 in December last year.

In the first three months of this year, the stock market lost its attractiveness after foreign investors took profits - becoming net sellers to the tune of more than Bt10 billion.

Kongkiat said it was likely |that listed companies would have to raise capital for business expansion because their capacity utilisation had recovered strongly.

As of January, the capacity utilisation of Thai industries was 74.6 per cent.

Kongkiat added that about 21 industries had capacity utilisation rates exceeding those from before the 1997 Asian financial crisis.

Listed companies raising capital will cap the upside potential of their stocks because of investors' concern over the dilution effect.

The problems in the South, the bird-flu outbreak, the stalemate in the attempt to privatise the Electricity Generating Authority of Thailand, and the terrorist bombings in Spain have weighed on the market.

But Kongkiat said acts of terrorism would only have a short-term impact on the market.

"Investors should also be ready to absorb further downward pressure on the Dow Jones Industrial Average because it is overpriced," he added.

Piyasvasti Amranand, chairman of TFB Asset Management Co, said the Thai market still had potential for growth because of sound fundamentals.

He said private investment should become a locomotive to drive growth in the next phase of the recovery.

If private investment remained weak the govern-|ment would offset this through infrastructure investment, he added.

Over the next six years, the government plans to implement a huge infrastructure investment scheme that would see some Bt2.04 trillion being pumped into the economy.

Piyasvasti said any recovery of the Thai market would depend on local investors rather than foreign ones.

"If they believe that the Thai market is on an upward trend over the next three to four years, then they will be willing to buy into the market at a price/earnings ratio of 12 to 14 times, or a SET index level of 900 to 1,000," he said.

Dr Paramethee Vimolsiri, an economist at the National Economic and Social Development Board, said US interest rates were likely to rise before the end of the year, but this would not affect Thai interest rates significantly as inflation remains low and there is ample liquidity in the banking sector.

--The Nation 2004-03-15

[Santastic]

is anyone in the US and Canadian market here?!? if so how do u place trades from thailand? if online, how is the speed?? real time data and such.

i'd like to get into thai market, but i have no clue in starting to do company research, or even open an broker acount.

thanks

[hkthai]

i'd like to get into thai market, but i have no clue in starting to do company research, or even open an broker acount.

thanks

Go to the SET's website. There's plenty of information on brokers with online trading capability.

[bankerboy]

i'd like to get into thai market, but i have no clue in starting to do company research, or even open an broker acount.

thanks

Go to the SET's website. There's plenty of information on brokers with online trading capability.

Yo hkthai!

Who are the better online thai brokerages? What are the requirements for "Kon Thang Prathet(foreigners)" like us?

Cheers,

Bankerboy

[hkthai]

i'd like to get into thai market, but i have no clue in starting to do company research, or even open an broker acount.

thanks

Go to the SET's website. There's plenty of information on brokers with online trading capability.

Yo hkthai!

Who are the better online thai brokerages? What are the requirements for "Kon Thang Prathet(foreigners)" like us?

Cheers,

Bankerboy

Bankerboy,

I didn't really do a lot of comparison when I opened an account. I was looking for the ability to trade online from overseas with a link to my savings account in Thailand. So I basically walked into one of the bigger brokerage house in Thailand (Kim Eng) and opened an account and requested online trading access.

However, the internet functionality is a bit crude (as most things internet related in Thailand) compared with something like Ameritrade in the US. But basically gets the job done.

As far as requirements for kon thang chart, can't really tell you as I am a Thai You can check out the Kim Eng website kimeng.co.th as there are some information for openning accounts. I am sure there are plenty of members on this board that can tell you the requirements.

BTW, good luck with your land purchase. I also have a house in Phayao.

hkthai

[OldAsiaHand]

In my own personal experience, Kim Eg isn't very farang friendly. Probably the most popular brokerage with local expats is Seamico, but the overall experience just isn't going to be anything like you would expect in the US. Still, you ought to at least have a look at www.Seamico.com.