SCB Securities has said that growth in listed companies and foreign investment could drive the SET Index to 1,900 this year, while the election next year could send the index to a new high of 2,000.
Pornthep Jubandhu, President of the Investment Strategy Department at SCB Securities Research Group, said that despite volatility in capital markets abroad, the SET Index could exceed 1,800 and potentially reach 1,900.
He cited a four-year high in foreign investment that reached 11.4 billion US dollars over the past 12 months.
The International Monetary Fund also upgraded its economic forecast for Thailand this year and next year, in contrast with its downgrade of global performance.
The country’s outlook is further brightened by the current slowdown in capital outflows, along with 20% growth in listed companies.
Rising benchmark interest rates are also expected to benefit industrial zones and banks.
Furthermore, the election next year could provide the market with the opportunity of reaching an all-time high of 2,000 points.
However, macroeconomic risk factors include Britain’s scheduled exit from the European Union, Italy’s budget crisis and the US-China trade war. National News Bureau Of Thailand | SCB Securities: Election next year could send SET to 2,000
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Singapore and Philippine stocks also lost more than 10% each as trade tensions between the US and China caused heavy capital outflows.
2018 was a grim year for equities all round, as only two exchanges in all of Asia Pacific — Mumbai and Wellington — ended the year with positive returns.
Shanghai, (-24.9%) for the year to Dec 27, was the world’s second-worst performer behind Athens (-25.5%).
But according to Nikkei editors Thailand, for example, who raised its key interest rate for the first time in seven years, is among Asian equity markets likely to attract buyers if investors rethink their portfolios as the U.S. economy slows and the Fed reviews its monetary policy.
Foreign investors were net sellers on the SET for the fourth year out of the past five (2016 was the exception with net buying of 77.9 billion baht).
But their net sales in 2018, at 287.45 billion baht, were more than 10 times the 2017 total of 25.75 billion, says the Bangkok Post.
For the year, Singapore and Philippine stocks also lost more than 10% each as trade tensions between the US and China sapped risk appetite and caused heavy capital outflows.
Indonesian stocks declined the least, falling about 2.5%.
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