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Eased political concerns spur SET gains

By The Nation 

 

Number of investors join Thailand Focus 2017 yesterday

 

BANGKOK: -- THE Stock Exchange of Thailand (SET) rebounded yesterday on an apparent easing in political tension, while foreign investors flocked to the Thailand Focus investment conference, seemingly untroubled by issues on the political front.

 

Prinn Panitchpakdi, managing director of CLSA Securities (Thailand), said the Thai bourse reacted positively to reduced concerns over the country’s political divisions.

 

“Thailand's politics has eased. Foreign investors were interested in this as they make long-term investments and do not want market volatility,” he said. “Besides, since this year, the SET Index has not risen compared with its counterparts in neighbouring markets and this is one factor the Thai exchange has gained more interest.”

 

The exit of former premier Yingluck Shinawatra last week meant that any protests feared for her August 25 verdict in a high-profile court case failed to materialise.

 

Prinn expected the SET Index to rise steadily towards 1,670 points over the rest of this year.

 

Phatra Securities has retained its year-end target of 1,600 points for the benchmark, as the global economic recovery continues at a gradual pace, said Patchanee Limapichat, president of the securities house.

 

The SET Index yesterday went through 1,600 points for the first time in two and a half years to close the day at 1,614.14 points, up 28.35 points or 1.79 per cent. The trading turnover was Bt95.65 billion.

 

The Thai market remains exposed to some risks, particularly those arising from the planned reduction in US asset purchases, Prinn said. Domestically, the profitability of Thai listed companies, especially small and medium-sized enterprises, should be in focus following declines in profit as a result of flat domestic consumption, Prinn said.

 

Patchanee said that for this year, the trend is for the Thai economy to sustain its improvement following a rise in exports and income from tourism, but domestic demand would take time to recover.

 

The economy will expand and its growth potential will increase if the government drives forward its Thailand 4.0 policy and the development of the Eastern Economic Corridor (EEC) swiftly, and accelerates its infrastructure investment, she said.

 

At the Thailand Focus event yesterday, SET president Kesara Manchusri said: “Foreign investors did not express their concerns over domestic political situation, but rather were focused on public investment – particularly in the EEC – and in the steady growth of listed companies' profitability.

 

Some 116 institutional investors participated in the event, representing companies with combined assets under management of more than US$2.6 trillion.

 

Although the bourse's daily trading turnover was thinner, individual investors' outlays dropped after narrow market movements. In the meantime, foreign investors and local institutional investors became active, reflecting their interest to Thai stock market, Kesara said.

 

The SET's return is hovering at 7-8 per cent in the US dollar terms, she said.

 

Globally, daily trading turnover turned downward, she said, saying that interest in the Thai stock market hinged on corporate profits.

 

Santi Kiranand, senior executive vice president and head of the issuer marketing division at the SET, said that a number of participating institutional investors in Thailand Focus expressed their confidence on the Thai stock market, which has become more attractive.

 

Source: http://www.nationmultimedia.com/detail/Economy/30325230

 

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