BANGKOK, June 7 – The Thai stock market remains an attractive haven for investors despite an index plunge by 32.45 points — 2.12 per cent — yesterday, according to analysts.
The fall on the Thai bourse was more severe than most Asian markets which suffered an average drop at 1 per cent given investors’ concerns about the US Federal Reserve’s less active purchase of bonds from September onwards.
Chatrapee Tantichalerm, Krungsri Asset Management chief executive officer, predicted several supporting factors contributing to the Thai stock market’s rebound including global capital inflows into emerging countries, a continued trend of low interest rate in the next few years, strong domestic consumption, increasing confidence among consumers and operators, and the private sector’s ongoing investment projects.
Business performances of listed companies are satisfactory with a 14 per cent growth in Q1 and a predicted expansion by 15-20 per cent this year, he said.
External volatility may have an impact on the Thai stock market but it will be short term, he said.
The baht weakened to close at Bt30.58/60 against the dollar yesterday due to foreign capital outflows following sell-offs in the Thai stock market.