KTAM expects SET to hit 1,750 despite Q1 figures
Despite lower-than-expected national economic growth in the first quarter, Krung Thai Asset Management expects the SET Index to touch 1,750 points this year on the government's Bt2-trillion infrastructure and Bt350-billion water-resource-management projec
Somchai Boonnamsiri, chief executive officer of KTAM, said the two mega-projects could propel gross domestic product this year.
GDP expanded 5.3 per cent in the first quarter year on year, lower than market expectations, with declines in investment and consumption.
Better developments in the United States, Japan and Europe could also give a boost to the Stock Exchange of Thailand.
RATE CUT LIKELY
The fund company also projects the Bank of Thailand’s Monetary Policy Committee to cut the benchmark interest rate by 25 basis points to 2.50 per cent to stimulate the economy when its members convene on May 29.
Somchai said the likely rate cut could have some impact on capital inflows and another cut could be made at the following MPC meeting if clear results are not seen. Some expect that a 25-basis-point cut would not be sufficient to stem capital inflows and slow down the baht’s appreciation.
If the policy rate is cut, investors are likely to turn to risky assets because of expected lower returns on the bond market, Somchai said.
