BANGKOK, 25 August 2015, – Stock analysts said the Stock Exchange of Thailand (SET) index would return to its 1,400-point mark, if the government’s new economic team is able to regain investor confidence with its stimulus package.
The SET yesterday dropped 64.55 points or 4.73 percent, closing at 1,301.06 points. An analyst said the drop in the domestic market is in line with global trends. China’s Shanghai Composite Index plunged 297.84 points or 8.49 percent.
The analysis came from Mr. Win Udomrachtavanich, CEO of One Asset Management Co. Ltd. He said the Cabinet’s new economic team would not affect the stock market in the short term. However, its economic policy is likely to make an impact on the market in the medium and long term.
The CEO strongly believes that the SET index can rebound and reach 1,444 points, despite current market fluctuations. Mr. Win suggested investors focus 50-60 percent of their investment portfolio on reliable returns such as bonds, followed by the foreign real estate sector and local stock market at 20-30 percent.
Meanwhile, Bank of Thailand Spokesperson Jirathep Seniwong Na Ayutthaya also said the the local stock market wind down reflected similar trends in other global markets. He added that the monetary market in Thailand would move in parallel with its counterparts in the region.