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Investment experts offer advice on dealing with rising inflation


Stock market experts on Friday advised investors to arrange their portfolios to deal with rising inflation.

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Phiphat Phisanuwongrak, chief investment officer at Land and Houses Fund Management, advised investors who can tolerate moderate to high risk to diversify their shareholding into two portfolios.

He suggested the main portfolio (80 per cent) should comprise 5 per cent in cash, 35 per cent in Thai shares (focusing on telecom, electronic and logistics, plus retail and tourism benefitting from the country’s reopening), 35 per cent in foreign shares (focusing on Europe, the US and Vietnam) and 5 per cent in commodities.

Meanwhile, a trading portfolio (20 per cent) should focus on funds that invest in stocks related to semiconductors and cybersecurity as their price had risen in line with increasing demand. Investors are also advised to invest in Chinese stocks to take advantage of a recent price drop.

Nattapong Hirunyasiri, MTS Gold chief executive, said the gold price is currently on a short-term downward trajectory as investors monitor the US Federal Reserve's move to taper quantitative easing and the baht strengthens.

He advised investors to buy gold when its price drops to between THB23,000 and THB25,000 per baht weight, adding that the price would not fall below THB20,000.

"Investing in gold is still generating enough return to curb current inflation at 5 per cent, while its price is likely to rise further," Nattapong said.

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Kavee Chukitkasem, Kasikorn Securities deputy managing director, advised investors to be careful in purchasing shares as uncertainty over Covid-19, the slowdown in Thailand’s economic recovery, decline in foreign tourists and delay in government economic stimulus measures and restructuring would pressure the Stock Exchange of Thailand (SET) Index.

"The SET Index will fall back after surging [recently], so this is an opportunity to buy shares for six months to one-year investment," Kavee said.

"Investors should pick shares which will benefit from future economic recovery, such as large banks (BBL, SCB and TISCO) retail (CPALL, HMPRO, CPN and CPNREIT) real estate (LH and SPALI), stocks which generate high dividends (MK) and electricity (GPSC).

Published : September 10, 2021