Fetco chairman Paiboon Nalinthrangkurn, however, said investors’ confidence remains high over hope for an influx of foreign funds, economic recovery and better turnover from listed companies.
He added that investors were drawn to shares in the banking, petrochemical and technology industries, and had no interest in shares in the tourism, fashion and print media industries.
Paiboon said the Thai stock market could hit 1,600 points by the end of this year on hopes over Covid-19 vaccine, but it would face short-term correction due to uncertainty over the vaccine’s side effects and US President-elect Joe Biden’s failure to boost the economy.
“The Thai stock market, however, will not face immediate correction because the market has not reached the level before the Covid-19 pandemic arrived,” he said.
He said the stock market would move into positive territory in the long term thanks to the influx of foreign funds, government measures to contain the spread of Covid-19 and to stimulate the economy, growth in listed companies’ turnover, high market liquidity, baht appreciation and low interest rate.
He said political unrest will not affect the market.
“These positive points will draw foreign investors to buy cyclical stocks such as shares in banking, energy, oil refinery, petrochemical, ICT and retail sectors,” he said, adding that shares in the tourism industry will require more time to recover.
Published : January 11, 2021
By : The Nation