SET up on lower US growth
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The Stock Exchange of Thailand index is expected to be in the green zone today, following the downward revision in the US first-quarter economic growth rate.
The index ended the morning session with a gain of 4.21 points or 0.30 per cent, to 1,428.59 points on turnover of Bt29.97 billion. At the close, the index ended up 22.07 points or 1.55 per cent to 1,446.45 on turnover of Bt61.9 billion.
The US economy grew at a slower pace in the first quarter than originally estimated, expanding at an annualised rate of 1.8 per cent over the fourth quarter of 2012, the government said Wednesday.
The final figure for the quarter was 0.6 percentage points lowerthan the updated assessment made last month, after personal consumption was less than estimated, the Bureau of Economic Analysis said. The growth rate was nevertheless better than the 0.4-per-cent expansion seen in the fourth quarter of 2012.
Thai stocks analysts now expected that the US Federal Reserve may keep in place the quantitative easing, given the poorer-than-expected economic condition.
Association of Securities Companies Chairman Patteera Dilokrungteerapop targets the SET index at 1,400-1,500 points at the end of this year.
She said that the second quarter earnings growth would soften slightly due to dollar/baht exchange rate volatility as well as lower purchasing power. The situation should improve in the second half. Despite foreign net-sells so far this year worth Bt87 billion, institutional investors' net-buys have exceeded Bt70 billion. Foreign funds will return in the latter half, she said, as investment projects will proceed as planned and Thailand's economic fundamentals remain strong.
SCB Asset Management Managing Director Chotika Sawananon said that her house still maintains the SET target this year at 1,550 points. The US recovery should gain pace, she said, while the condition in Europe does not deteriorate. Meanwhile, the economic slowdown in China should not be as serious as anticipated.
