Maybank sees capital market volatility in H1
THE GLOBAL capital market will be buffeted by volatility throughout the first half of this year because of the sharp slowdown in the world’s second-largest economy, the oil-price plunge, strife in the Middle East and economic crises in developing markets,
“This year, the world economy is still sluggish because of the economic slowdown in China,” chief executive officer Triphon Phumiwasana said yesterday. “This creates a new round of risks of an economic crisis and significant pressure on the fluctuation of the global capital market.
“Investors should be cautious and carefully study any possible risks, to select investment funds with a good investment policy. They should| purchase the right stocks that will allow them to reduce possible losses from long-term investment.” |The company was launching its |Bt1-billion Maybank Ultimate Global Growth fund, which |will invest in the global capital market and target companies with |high innovation and growth potential.
The fund will be an alternative for people who are seeking a good return and can accept moderate investment risk.
Lower return
Based on Maybank’s evaluation of the global capital market, the average return on stocks last year slid by 4.3 per cent.
The return from investing in the US-based S&P 500 index declined by 0.7 per cent, in emerging markets by 17 per cent and in Thailand by 14 per cent.
Only Europe and Japan showed gains, of 7.7 and 8.1 per cent.
Investors have become concerned about higher risk, as they will not get a good return on their assets.
Suthin Sae-Ngow, fund manager for the Thai equity market, said that throughout the past year, foreign investors sold Thai stocks.
The other negative factors included the almost 30-per-cent dive in the oil price, the super-hot bidding for telecom licences on the 1,800- and 900-megahertz spectra and worry about their competition in the future, and the swell in non-performing loans in the banking industry.
“For this year, we expect the economy in Thailand to be better if the government can move on its measures to spur the economy as planned, especially the investment in infrastructure projects, which will |help stimulate the economy in the next two to three years,” Triphon said.
“Such measures will raise the confidence of the private sector.
“Thailand’s stock market, however, is facing many challenges, which we should not overlook, including the high level of household debt, low income of farmers and listlessness of China’s economy.
“This will have an impact Thailand’s export sector as well as the number of tourists visiting from China,” he said.
