By The Nation
Organisations (FETCO), predicted on Thursday.
Paiboon Narintarangkul forecast the Thai stock market would rise further next year due to Thailand’s strong economic fundamentals and success in containing coronavirus.
Earnings per share next year are expected to grow at 40 per cent, largely due to the low base this year, he said.
Foreign investors are showing growing interest in Thai stocks as they look for upside opportunities, he added.
Capital inflows will continue from the first quarter next year, he said.
Paiboon was speaking after the Stock Exchange of Thailand (SET) Index jumped 17.9 per cent in November, the highest gain among Asian markets and among the highest in the world. Much of that rise was driven by overseas inflows.
Investors are betting, among other things, on the recovery of Thai tourism once Covid-19 vaccines are rolled out next year.
Paiboon said the impact of current political protests may be short term if there is no major change that leads to a general election.
“Investors are paying more attention to capital inflows and signs of economic recovery,” he explained.
Investor confidence in November surged 161 per cent to 161.41 from the previous month, according to the investment sentiment index.
“Investors are very bullish for the first time in the past two years,” Paiboon commented.
They are betting on large capital inflows, economic recovery, US Federal Reserve’s accommodative policy and the availability of Covid-19 vaccine, he said.
However, political uncertainty remains a concern.
Economic sectors standing to benefit from the recovery include consumer goods, retail and banking. Forecast to recover more slowly are tourism-related businesses such as hotels and airports.
The energy sector is the most attractive to investors, while there is little interest in insurance and life assurance, according to Paiboon.
“The SET index next year is expected to recover to pre-Covid-19 levels of 1,580 and could rise higher to match markets which have already risen above their pre-pandemic level,” he predicted.
The SET index closed at 1,438.32 on Thursday, up 1.44 per cent and with a large trade volume of Bt82.6 billion.