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Volatile months ahead for Thai bourse: experts

Aug 04. 2020
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By The Nation

The Thai stock market would face volatility in the remaining five months of this year, asset management experts predicted. They expect the Stock Exchange of Thailand (SET) Index to move between 1,300 and 1,400 at the year-end,

Wiput Uaanant, Krungsri Asset Management's chief equity investment officer said the Thai stock market in the remaining five months of this year would move in a narrow range compared to the first half of this year.

"The SET index at the year-end is expected to be at 1,400 as we expect the country's economy and companies' profits to recover gradually from the lockdown easing and monetary policy," he said.

"Besides, the low interest rate will also help boost investment in stocks."

He advised investors to monitor the Covid-19 impact on the economy closely.

"We recommend increasing investment in companies that benefit from the economic recovery, such as the commercial group," he said.

He added that stocks the company weighted more than the market were food and beverage, and information and communications technology, while stocks that the company weighted less than the market were hotel, restaurant and logistics.

Theeranat Rujimethapass, Tisco Asset Management's president, said the company expected the index at the year-end to move between 1,300 and 1,350.

"The index would rise slightly as foreign funds may flow into the market because of the low interest rate and high liquidity, while the Thai economy would recover gradually," he said.

"Therefore, we advise investors to pick up stocks with good fundamentals and that pay high dividends."

Somchai Amornthum, Krungthai Asset Management's assistant to the chief executive officer of the Strategic Asset Allocation and Fund Marketing Department, expected the index at the year-end to be at 1,350 as listed companies' profits are expected to drop by 22 per cent.

"The Thai stock market would face volatility in the remaining five months of this year even though the country's economy may be better than in the first half of this year," he said.

"However, the index would rise more than expected if it gains positive sentiment from news on the development of a Covid-19 vaccine."

He advised investments in stocks that benefit from a low interest rate and show good performance.

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