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Thai bourse could pass 1,000-points at year-end says Securities firm
The Stock Exchange of Thailand (SET) composite index
could advance through 1,000 points before the end of 2007 while Thailand’s
gross domestic product (GDP) could sustain growth of over 4.5 per cent if
the draft constitution is approved in this month’s national referendum and a
general election is held later this year, a senior executive of a securities
firm said.
Montri Sornpaisal, president of Kim Eng Securities, said stock investors are
still awaiting the results of the referendum for the draft charter on August
19.
If it is approved and the election is held on schedule, investors will gain
more confidence and the country’s economy could grow more than the 4.5 per
cent as projected earlier, said Mr. Montri.
More public spending is expected along with increases in local consumption
and investment, he said.
The SET index could rise through the 1,000-point level as the profits of
listed firms will grow five and 12 per cent in 2007 and 2008 respectively,
he said, adding that foreign investors are now adjusting their investment
portfolios after being net buyers for some time.
Last week the SET index closed at 837.73 points, while total turnover was
about Bt19.9 billion.
But Mr. Montri cautioned that Thailand’s economy could be hit by the
imbalanced global economy, a sluggish US economy and the weak dollar.
(TNA)
Thai jewellery traders
complain of market
seizure by Indians
Thai jewellery traders have complained their markets in the
eastern province of Chantaburi have been seized by some groups of Indian gem
traders through a price distortion.
Pornchai Chuenchomlada, president of the Thai Precious Stones and Ornaments’
Association, submitted a written complaint to a member of Thailand’s National
Legislative Assembly that the number of Indian gem graders in the province had
increased considerably. Some groups of the Indian traders had distorted product
prices to such an extent that Thai entrepreneurs including manufacturers and
traders could not compete with them.
He said the Indian traders had an advantage because they had a larger amount of
capital, more branches overseas, and lower trading costs. In addition, most of
the Indian traders had often shunned abiding by state rules and regulations.
Currently, more than 100 out of 200 jewellery manufacturing plants had closed
their businesses, as they could not compete with the Indian traders in terms of
prices.
The association wants state agencies concerned in security affairs to examine
whether the Indian traders’ behaviour undermines the country’s economy, Pornchai
said. (TNA)
Thailand seen as magnet for alternative energy investment
Thailand has the potential to become a magnet for investment
in alternative energy in the future, according to a leading Thai fund manager.
Speaking after a seminar last week titled “Alternative Energy, Alternative
Investment,” Pichit Akarathit, president of MFC Asset Management Plc, said that
the demand for energy in Thailand is increasing continuously, but that the
country could count on local produced energy for only a small portion - 10 per
cent - with the remaining 90 per cent being imported.
Participants shared a common view that investment in alternative energy would
give Thailand an opportunity to reduce its dependence on energy imports and
instead count on energy derived from agricultural products.
Such production would help boost local people’s incomes, benefit the economy,
and protect the environment.
Currently, he said, the focus of funds around the world was directed towards
investment in alternative energy and he said Thailand was one of the countries
attracting a great deal of investment interest.
Mr. Pichit said MFC had set up an energy fund and planned to list it with the
Securities and Exchange Commission by August 19 or 20. Initially, the fund will
have an asset size of Bt3 billion, and is expected to increase in the next few
months as many energy companies and financial institutions come on board.
(TNA)
BoI plans to take SMEs
to join world-class trade fairs
Thailand’s Board of Investment plans to take almost 40 small-
and medium-size enterprises (SMEs) to join world-class trade fairs during
October and November to expand auto and electronics parts markets overseas.
Chanin Kaochan, head of the BOI Unit for Industrial Linkage Development (BUILD),
said the unit would lead the SMEs of auto and electronics parts to exhibit their
products in M-Tech Kansai 2007 in Osaka, Japan, during October 3-5.
The exhibition fair is Japan’s largest event in which SMEs from every corner of
the world participate. Last year, more than 26,000 people visited the event.
In addition, the unit would take the Thai SMEs to take part in MIDEST 2007 in
Paris, France, during November 11-19.
It is an annual trade fair of supporting industries that more than 1,700
companies around the world participate in and almost 50,000 large, medium, and
small producers of goods visit each year.
He said both events would give Thai industrial parts producers an opportunity to
present their products and production potential before buyers from all over the
world.
They would use the events to analyse the present and future market trends and
find new production technology to develop their competitiveness in a sustainable
manner, he added. (TNA)
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