Thai stock index will reach its peak at 1,704 points this year, the highest in 19 years, according to the Securities Analysts Association (SAA).

SAA Secretary General Sombat Naravuthichai said analysts have adjusted the earlier SET index prediction of 1,471 points for this year to 1,625 points, or 154 points higher.
Contributing factors for the surging index are the government’s Bt2 trillion investment for Thailand’s infrastructure development, an expansion of listed companies’ performance by 20.3 per cent from the original forecast of 15.2 per cent, an adjusted economic growth from 4.6 per cent to 4.9 per cent, and foreigners’ continued investments in the Thai stock market, he said.
Net purchase in the stock market in the last three quarters is forecast at Bt27 billion.
Mr Sombat said analysts weigh heavily on the volatility of P/E ratio, recently 14.5 at the index of 1,550 points, the Eurozone situation and political maneuverings in Thailand, especially regarding the constitutional amendments and scrutiny of the prime minister.
He added that virtually all — 94 per cent — of analysts were concerned with the delay in public sector investment which will impact the country’s overall investment and economic expansion.
Mr Sombat predicted the construction materials sector to earn the highest growth profit at 37.41 per cent, followed by the property sector at 33.42 per cent, and the banking sector at 24.84 per cent while the policy interest rate will remain at 2.75 per cent.   (MCOT online news)

Source: Analysts predict rocketing SET index at 1,700 points this year | |

About the author

Leave a Reply

This site uses Akismet to reduce spam. Learn how your comment data is processed.

Sign Up for Our Newsletter

Get notified of our weekly selection of news

You May Also Like

Reducing ASEAN’s food import dependency

While ASEAN’s staple food is rice, there has been increased demand for wheat, soybean and maize over the past decade — an increase that ASEAN production cannot meet.

Thailand to tax Stock market trades ending a 30 years waiver

The tax is expected to contribute to the Thai government’s budget revenue by about 8 billion THB (230 million USD) in the first year