Thai equity market still attracts investors
Investors remain positive towards the Thai equity market and are eager to invest, especially in the consumer and healthcare sectors
The consumer and healthcare sectors which have been among the best-performing sectors here, with a 27 per cent and 39 per cent gain year-to-date, respectively.
As for the telecom sector, most investors believed that the 3G licences would not be issued soon, base on disappointing development in the past two years. Even though the sector has risen 35 per cent year-to-date, the gain was believed to have been driven by conducive political situation after the Pheu Thai Party's general election win, which could mean less political interference in the telecom sector. However, they are convinced that once the 3G licences are issued, it could be a catalyst for the sector, CIMB Securities (Thailand) said.
CIMB Securities (Thailand) believes "domestic play" stocks or those which stand to gain from domestic economic improvement should continue to perform well in view of the strong Thai economy with little exposure to external slowdown. These sectors are likely to benefit from government stimulus programs too.
However, foreign investors' concerns remain on Thai politics, especially with possibility of former Thai Prime Minister Thaksin Shinawatra returning to Thailand, as well as the rising domestic inflation outlook fuel by the populist measures.
