Rise in Thai, China stocks to continue next year, Tisco says
Tisco is upbeat about Thai, Chinese and other Asian stocks, projecting the SET Index to rise to 1,450 points next year from the 1,300 level expected at the end of this year.
Vorasinee Sangvornvetphan, wealth strategist at Tisco Wealth, said yesterday that the return on equities had outstripped other investments this year.
Bourses have been boosted |by major central banks injecting more funds into their economies, resulting in increasing global fund flows.
Asian stock markets are the most attractive thanks to strong economies amid weaker advanced economies.
The Stock Exchange of Thailand will be supported by the expected escalation in oil prices. That will push up the stock prices of energy firms and the energy sector represents about a quarter of total market capitalisation, she said.
Global capital is expected to continue to flow into Asia and |that would drive the SET up |further.
Gold is also attractive for investment.
Investors should allocate 60 per cent of their portfolio to stocks and commodities and 40 per cent to bank deposits and bonds, Tisco sayd.
The Chinese stock market should get priority because of relatively cheap shares. Foreign investors are expected to look at this market as the change in Chinese leadership will take place next month. That is expected to lead to fresh investment by Beijing, as the new leaders will want to stimulate the economy to gain political popularity.
