By PHUWIT LIMVIPHUWAT
The Stock Exchange of Thailand (SET) index is expected to reach 1,750 points by the end of the year, mainly driven by increasing foreign investment in the Thai bourse and formation of the new government, Sukit said at a press conference titled “SCB Wealth Holistic Experts” today (July17).
The SET index rose to 1,731 points at the close on Tuesday.
The return to civilian rules will enhance Thailand's attractiveness as an investment destination for foreign investors. Furthermore, the new government is expected to implement economic stimulus measures to boost growth in the second half , creating investment opportunities in some sectors, he said.
Further public investment in infrastructure and continued spending in projects in the Eastern Economic Corridor are expected to be the priorities of the new administration, Sukit stated.
It would be a good opportunity for buying stocks in the industrial estate and infrastructure sectors, he added.
Currently, the market cap for industrial estate stocks stands at Bt140 billion, a mere 0.8 per cent of the total market value, indicating the high growth potential of the sector in the second half, he said.
Furthermore, the incoming government is likely to implement short-term measures to stimulate domestic spending either through the welfare card policy or a rise in the minimum wage, Sukit said.
The increase in domestic spending will benefit the retail sectors, making investments in retail stocks a viable choice, he said.