Investors flee on QE tapering fears
Through its research released yesterday, the Stock Exchange of Thailand urged investors to remain calm, as the composite index slid to a two-month low on fears that the US may soon taper its quantitative easing (QE) programme.
At the close, the SET index lost 27.15 points to end at 1,543.13 on turnover of Bt55.46 billion.
The SET research showed that only a little of foreign funds flowing into Thailand during the QE period is left, as foreign investors have unloaded sizeable portions before the tapering starts. Meanwhile, domestic political situation has been a major factor influening the Thai stock market in the first half rahter than QE tapering. The research centre noted that if the political situation is more stable, this could instead benefit the Thai market in the future.
Meanwhile, HSBC economists viewed that if monetary policies in Western economies shift gears, volatility in Asian equities are expected to increase and limited upside potential may stall until year-end 2014. Among Asean markets, it recommends buy only for Indonesia. Elsewhere in Asia, it is overweight on China and India.
Tisco Asset Management today also urged investors to buy into its new fund, which will be invested in North Asian countries including China, which is expected to benefit from economic recovery in the US.
