Still a chance for foreign investors' return: Trinity
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The Stock Exchange of Thailand index could rise to 1,350 points, if the political stalemate ends in the first half of this year, said Trinity Securities.
On the other hand, if the stalemate proceeds, the index could fall to 1,250 points.
In a research note, it said historically, foreign investors usually reinvest 80 per cent of their net sale. The first to return would be those from Europe and Japan.
According to the exchange, as of February 25, foreign investors sold Thai shares for net Bt19 billion in this month. The year-to-date net sale reached Bt32.8 billion. Last year, their net-sell position was Bt193.9 billion.
Trinity noted that the Bank of Thailand is expected to cut the policy rate by another 0.25 percentage point when convening in March, as political impacts on the economy are grave.
