SET index down today, but outlook remains bright

The index closed 9.78 points or 0.76 per cent lower, to 1,279.29 points on turnover of Bt22.5 billion. Securities houses anticipated the index to end the year above 1,300 points, before reaching 1,450 to 1,500 points next year.

At a seminar today, Aberdeen Asset Management maintained the view that global emerging market as a whole is still attractive for investors due to attractive relative valuation and superior policy flexibility, with less government debt. In addition, more global quantitative easing is likely to result in capital inflows.

Experts at the seminar viewed that Thailand and other Asian economies are benefiting from expanding consumer spending with lower interest rates. There is an ample room for economic stimulus and further monetary easing. However, domestic politics can lead to renewed instability, they warned.

The Thai bourse has so far shown impressive performance. As of October, when the index ended the month at 1,298.87 points, the index had advanced 26.68 per cent from the end of last year, the biggest increase among regional bourses. According to the exchange, at the end of the month, market capitalisation of the main bourse stood at Bt10.86 trillion, up 29.13 per cent from the end of the year and 0.75 per cent from September. 

Due to capital inflows, Thailand's three-year government bond yield was near a two-year low after international investors added holdings amid speculation the central bank will keep borrowing costs low this year.