Monday, March 30, 2020

GPF touts long-term investment in SET

Feb 27. 2020
GPF Secretary-general Vitai Ratanakorn
GPF Secretary-general Vitai Ratanakorn
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The Government Pension Fund (GPF) believes the Thai stock market is now suitable for long-term investment, in wake of the SET index falling through the 1,400 level to close at 1,370 points on Wednesday.

Secretary-general Vitai Ratanakorn said the Thai bourse fell by over 210 points to 1,370 on February 26 from 1,580 at the beginning of this year, mainly due to fear of the Covid-19 outbreak which has affected the performance of many listed companies.

“Decline in the SET index corresponds to other markets worldwide, reflecting investors' concerns about this external factor,” he said. “However, many stock prices have already responded to the impact and the risk of the index falling further is limited”.

He said the Thai stock market has a price-earnings ratio of 14.2 times this year, which is lower than the average of 15.5 times in the past five years.

“Meanwhile, GPF cannot speculate on the lowest point of SET index but we foresee a suitable price level for long-term investment,” he said.

“Investors should consider stocks with good fundamentals and cheap price, or stocks which will benefit from various measures”.

“We also recommend investing in property funds, Real Estate Investment Trust (REIT), and infrastructure funds which pay high dividends, as well as investment in various assets to spread out risks,” he added.

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