Return of investors seen next year

“Investors would be more interested in venturing into the Thai stock market next year since the average return on investment in stocks is up to 20 per cent this year. Investors often look back at the performance of the previous year before making future investment decisions,” said Pongpichet Nananukool, KAsset’s managing director. However, since most of the investment portfolios in mutual funds are bonds, the expected increase in monetary terms will be more in the bond market, but the size of the growth will be more apparent in the stock market.

“The portfolios of foreign [stock] markets are also expected to increase from the economic recovery in many countries, which can provide good returns. Therefore we can see good growth in foreign and domestic equity markets,” he said.

Pongpichet said the profit of listed companies should be good next year if gross domestic product manages to grow by 4 per cent, and he expects the SET Index to increase to 1,750 points by the end of 2015.

KAsset expects to expand into the CLMV countries (Cambodia, Laos, Myanmar and Vietnam) in the near future once those countries allow foreigners to raise funds in their capital markets.

“We already have customers along the borders and in the near future we will have to gain more understanding about this customer group in order to find out about their needs so that we can tailor our products and services to fit them,” he said.

Navin Intharasombat, first senior vice president of foreign investment management at KAsset, said oil prices would continue to be low and fluctuate from excessive supply. The picture will be clearer in the first and second quarters of next year once the Organisation of the Petroleum Exporting Countries and producers of US shale oil reveal their next moves.

Thidasiri Srisamith, first senior vice president of investment management at KAsset, said the falling prices of oil had inevitably affected the SET Index for now, since around 10 per cent of listed companies are in the energy sector. However, many corporate investors have been underweight in this sector for quite some time, so the impact on the market should not be so severe, though the effect on the index is more apparent.

The positive aspect for investment in the energy sector next year will be the government’s energy reform plan, which has received positive response from the market because of its quick execution. Earnings growth should be around 15 per cent with non-dividend yield of 3.5 per cent, since the economy should benefit from the current political stability, the falling price of oil, and the government’s investment plans.