SET index expected to reach 1,200 points in first half of 2011

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The Stock Exchange of Thailand (SET) composite index is likely to reach 1,200 points in the first half of next year, boosted by the country’s continued economic recovery, according to a leading securities analyst.

Tawatchai Asawapornchai, vice president of Globlex Securities’ Securities Analysis Division, said the price/earning ratio of the Thai market would stay at 15.15 times if the index surged to that level.

He projected the daily trading value would be as high as Bt29.45 billion as it remains driven by continued economic growth this year, bolstered by the government’s ability to collect revenue as targeted and the low public debt level.

Tawatchai said the operating performance of listed companies on the SET continued growing on par with those of listed firms on other bourses in the region.

It is projected the performances of the listed companies in 2011 would grow 20 percent against the 11.5 percent expansion in 2010.

The continued strengthening of the baht is another positive factor that could encourage foreign investors to invest in the Thai stock exchange without interruption.

However, he warned the SET index might drop to 980 points if the domestic political situation remains uncertain and economic difficulties in many countries, particularly in Europe, continue unabated.

“The direction of the Thai stock market remains positive, but the index may be volatile, depending upon the political situation. It is expected the securities trading next year will be more active than that of this year,” he said. (MCOT online news)