SET rebound after 'correction' seen
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BBL Asset Management believes the Stock Exchange of Thailand will rebound in the next seven to eight months as its recent plunge is regarded as a short-term correction, said BBLAM chief executive officer Vorawan Tarapoomi.
The decline in the SET Index by 9.3 per cent within 11 days was in line with the rest of the region. BBLAM is still upbeat on the Thai bourse as the country is injecting new investment through its Bt2-trillion infrastructure project, which remains attractive to foreign investors.
The SET Index yesterday closed at 1,516.24, up 1.75 per cent with Bt52 billion in turnover, in line with regional trend.
The index declined after the US Federal Reserve suggested it would end its quantitative-easing policy, but BBLAM reasons that the end of QE means the US economy has recovered, which is a benefit to the global market.
Vorawan said long-term investors were not expected to worry about the market as much as short-term investors, but she suggested increased investment in defensive stocks while making sure to protect assets to ensure a healthy return.
Bualuang Securities has maintained its target for the SET Index this year at 1,640 despite the recent decline, given that foreign investors are still watching the Thai market, said managing director Pichet Sithi-Amnuai.
Political instability may be a concern for a short period but will not have great influence, he said.
“This period is a golden opportunity for investors. Stock prices have been significantly devalued even lower than base price; therefore, these stocks are greatly attractive, particularly in the banking and real-estate sectors,” he said.
He said the greater number of long-term equity funds being issued while the SET Index was at 1,500 points reflected the bright outlook of the bourse.
