Foreign stock selloffs to proceed only for short run

BANGKOK, June 19 (TNA) – The continued selling of stocks by foreign investors on the Stock Exchange of Thailand (SET) is expected to proceed only for the short run, according to a leading fund manager.
MFC Asset Management Co president Pichit Akarathit said that foreign investors had dumped Thai shares partly because they are concerned about the country's ongoing political conflicts.
It is difficult to predict how the political confrontation will end, he said, adding that foreign investors had therefore slowed their investment to avoid risks.
An acceleration of the inflation rate had also fuelled investor concern. Accordingly they decided to shift funds from the stock market into low-risk assets.
"We view anti-government demonstrations as not being a main cause for investors' concerns. Should we assure foreign investors that all conflicting parties respect the country's rules and regulation, their concerns would finally ease," he said.
Mr. Pichit said Thailand's economic fundamentals remained strong and its competitiveness remains sound when compared with that of other countries.
He predicted the country's economy would grow in a range of 4.5-5.5 per cent this year because the government had a firm spending and investment plan.
This, coupled with significant farm product prices, would contribute to economic growth, he said.