Over 40 billion Bahts To Enter Thai Stock Market

Could SET Go UP To 1000 Within Two Years?

More than Bt40 billion of foreign investment is expected to enter the Stock Exchange of Thailand (SET) between the second half of this year and 2008, said a senior executive of Tisco Securities Co.

Paibul Nalintarangkul, managing director of Tisco Securities, said there were positive signs the Thai stock market would rebound during the second half of this year and through 2008 with high expectations that over Bt40 billion of foreign investment would enter the SET during the period.

The foreign investment would come from long-term investors and hedge funds as they are monitoring new sources which could offer a handsome investment returns while they believed that Thai, Philippine and Taiwanese stock markets have not yet reached their peak, said Mr. Paibul.

Foreign investors are also optimistic that Thai political situation should improve late this year after a general election, he said, adding that more foreign investment would enter the market if the country's political climate improved. Investment yields of listed firms in 2008 are expected to improve in line with the market condition with growth to improve by 15 per cent from this year's growth which is projected to remain stagnant.

Meanwhile, Supavud Saicheua, managing director of Phatra Securities, said the local political situation remained a major risk factor which could depress the SET while investors were also monitoring whether the new government, to be formed after the general election, to be held in December, would come up with new measures to stimulate foreign investment.

Kongkiat Opaswongkarn, chief executive officer of Asia Plus Securities, said the SET had declined sufficiently in the past that investors could now invest with the right timing. He urged the interim government to further clarify the 30 per cent capital reserve requirement and the Foreign Business Act while it is in power and not to leave these issues for the new government to decide.