Sustainability a key issue for foreign stock investors here 

Patareeya Benjapolchai, special expert for corporate governance and social responsibility at the Stock Exchange of Thailand (SET), said that some Thailand funds have capitalised on the trend for sustainable stocks through launching funds focusing on sustainable stocks. But, she warns, Thai listed firms must pay more attention.
Building up sustainability requires a board of directors committed to blending a sustainability plan into a firm’s business operation and development policy with all-party cooperation, Patareeya said. Large local companies in particular have been paying increasing attention to the trend, she says
Even though a company’s costs will rise following sustainability development, it is worth investment for long-term business opportunities, Patareeya said. Consumers and investors will help add value to firms with a sustainability program in the future.
Santi Wasanasiri, vice president for innovation and sustainability at Thai Oil Plc, said that sustainable business development does not cost the company much, particularly when adding in improvement in employee confidence and job creation for business expansion. Investment could increase with the company’s focus on social benefits, and that in turn could lead to growth in exploration and refining.
On the stock investment front, global stock markets are expected to decline 5 to 8 per cent in the next one to two months before the Federal Open Market Committee’s (FOMC) September 20 meeting. That’s due to expensive valuations and overbought market position, said Viwat Techapoonphol, deputy managing director and head of technical analysis at Tisco Securities.
Speaking in a seminar on Tisco Monthly Guru Updates recently, Viwat also cited negative divergence between economies and stock markets, and concerns over likely liquidity drop, US dollar appreciation, and the US Federal Reserve’s benchmark-rate hike and balance sheet reduction. 

Global decline 
The SET Index will likely follow global markets’ expected declines but to a limited extent, Viwat said. Its support line is set at 1,550-1,530 points. After that, the SET Index is expected to gradually rise in the next two months given Thai laggard stocks.
“Thai stocks remain highly laggard. In the past four years, foreign investors were net sellers of Thai stocks after foreign capital opted to flow into Taiwan, India, Indonesia and the Philippines,” he said.
The Thai bourse will likely outperform in the latter half of this year on expectation of the country’s economic recovery and foreign capital inflow, he said.
In the second half of 2017, the Thai government’s investment |projects will go ahead with metropolitan rapid transit (MRT) projects, the Eastern Economic Corridor development and more certainty over the general election, he said. 
Viwat urges investors to gradual accumulate stocks during July-August of this year with the support line of 1,550-1,530 points.
If the SET Index surpasses 1,600 points, he suggests a buy and hold strategy for the long-term or make short-term profits before the FOMC meeting in early September or early December. The resistance line this time is 1,600-1,620 points and the target is 1,650 points.
Viwat picks stocks which relate to the government’s investment policy like those in construction, logistics and industrial estate groups, and those gaining from the baht depreciation like trade, exports and consumer plays.