BANGKOK – The CEO of Krungsri Asset Management Co., Ltd., is retaining his prediction that Stock Exchange of Thailand (SET) this year will reach 1,650 points and profits from listed companies would expand by 8%.
Krungsri Asset Management CEO Udomkan Udomsap indicated that the local economy is recovering steadily and the government’s major infrastructure projects are moving along, attracting investors to the Thai stock exchange.
He said the SET index during the latter half of the year will likely to recover better than the first half, which rose only 2%. Mr. Udomkan indicated that positive factors during the first half of the year include the recovering consumer spending, recovering exports, improved agricultural income, and investment in the government’s mega-infrastructure projects.
Regarding the US Federal Reserve’s 0.25% interest rate hike, the CEO said the move was widely anticipated and speculated that the central bank is less likely to adjust rates again this year, given that the United States’ inflation rate remains at 2%. Therefore, foreign capital is expected to reroute to Asian markets, including Thai stocks and bonds.
The Thai stock market has become more lucrative, due to the prices of local shares climbing at a slower pace compared to other stock exchanges in the region, reflecting a stronger baht that is trading for less than 34 baht per US dollar.
He said Krungsri Asset Management is set to become a top broker in the CLMVT region, by focusing on retailers and corporate institutions. CLMVT includes Cambodia, Laos, Myanmar, Vietnam, and Thailand.
