SET index could reach 1800 points

Meanwhile, Krungsri Asset Management has plans to expand its asset under management (AUM) by 22 per cent by concentrating on expansion through Krungsri Bank’s customers and the introduction of new products that would better suit the current investment environment.
Krungsri Asset’s chief executive officer, Chatrapee Tantixalerm, said he expects the asset manager to increase its AUM from Bt270 billion at the end of 2014 to Bt330 billion by the end of 2015. The products that have contributed the most to the 37 per cent AUM expansion last year were dividend stocks and long-term equity funds, both of which are the largest in the industry.
The asset manager has increased the number of its new accounts by 31 per cent last year.
Krungsri Asset expects the SET index this year to be at a wide range between 1300 and 1700 basis points but the index has a chance to reach 1800 if it can establish it base at 1400. Nevertheless, the fund manager is still wary that supportive factors such as government spending might not be as good as expected and the index would most likely be able to establish it base at 1350 basis points. This means that the index would probably end the year at around 1700 instead of the widely hoped 1800 basis points.
Kasikorn Asset Management (KAsset) also expects the SET index to end the year with 1700 basis points. The fund managers still have a positive vibe about the growth of Thai stocks, which are expected to get a boost from increased public spending on investment infrastructures and the government’s budget acceleration process.
KAsset’s first senior vice president of investment management, Thidasiri Srisamith, said Thai stocks still have a more attractive price compared to others in the region, which means there is still room for profit growth.
She said that even though the economic climate is currently negative, the country’s economic foundations are still sound and the lower price of oil should contribute positively to the performance of the listed companies, except those in the energy sector. So, she expects the economy to continue with its recovery while it is supported by the expected increase in government spending.
Thidasiri said stocks that would benefit from government investment in infrastructures were those related to real estate development, construction materials, contractors and logistics.
Krungthai Asset Management (KTAM) said the recent slump of the index means it is a good time for the asset manager to provide the expected returns since many assets outperformed and have the potential to grow at an even greater rate this year.
KTAM’s Chief Executive Officer, Chavinda Hanratanakool, said the overall domestic consumption has shown positive signs in the past two quarters and the expected results from the government stimulus measures means that the Thai economy will continue to recover while the globally low interest rate and the quantitative easing policies in Europe and Japan means that capital will seek risky assets and the fund manager expects the SET to end 2015 with 1680 basis points.