Experts confident foreign funds will return after Bt300bn outflow from SET this year

FETCO chairman Paiboon Nalinthrangkurn expects foreign investors to continue selling Thai shares this year as they focus on technology and healthcare stocks whose value is rising in line with “new normal” trends.

However, he forecasts that foreign investors will return when Thai stocks are boosted by global economic recovery next year, adding that many analysts had adjusted their projections for SET-listed companies' profits next year into positive territory.

"Among Asian indices, the SET has fallen farthest, and foreign investors have sold more Thai stocks than any others," he said.

"However, we expect the index to rise next year as we have lots of stocks that will grow in line with the economic recovery."

Somchai Amornthum, executive vice president at Krung Thai Asset Management (KTAM), said more foreign funds were likely to flow out from the SET this year due to uncertainty over the US presidential election.

He agreed foreign investment would return next year amid the global economic recovery and forecasts of 20-per-cent growth in SET-listed companies' revenue. He also expects Thailand's political unrest will be resolved, resulting in more positive investment sentiment.

"Regardless of the US presidential election result, many countries will launch measures and cash injections to stimulate their economies, which should help make [Thai] shares more attractive to investors," he said.