ID :
136934
Tue, 08/10/2010 - 09:19
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http://m.oananews.org//node/136934
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SET index likely to continue rallying amid profit-taking risk
BANGKOK, Aug 10 – The Stock Exchange of Thailand (SET) composite index is likely to continue rallying, but investors must brace for a profit-taking anytime, according to Securities Analysts Association president Paiboon Nalinthrangkurn.
The expected rally is driven by an excess overseas liquidity and the attention being paid by foreign investors to investing in Asian stock markets including SET due to the regional economic growth.
He said Thailand’s gross domestic product (GDP) is projected to grow 7-8 per cent in the second quarter of this year and profits earned by listed companies are likely to be sound despite the recent political violence.
In the past three to four weeks, Mr Paiboon said, foreign investors had begun returning to invest in the Thai bourse following the sell-off of Bt30-40 billion during the political turmoil.
The foreign investors had begun investing in blue-chip stocks, but not in the energy sector which has a large market capitalization.
Should investors turn to invest in energy stocks, he said, it would help boost the rally of the Thai bourse. However, since Thai stock prices had increased rather rapidly thanks to the growth of the investment portion of small investors to 40 per cent from 20 per cent, people wanting to invest in the stock market now must be wary of a profit-taking.
In addition, they had to take into account risk factors to the market including the global economic problems and Thailand's domestic political uncertainty.
Should the political situation heat up again, he said, foreign investors might dump their shares to avert risks. (MCOT online news)
The expected rally is driven by an excess overseas liquidity and the attention being paid by foreign investors to investing in Asian stock markets including SET due to the regional economic growth.
He said Thailand’s gross domestic product (GDP) is projected to grow 7-8 per cent in the second quarter of this year and profits earned by listed companies are likely to be sound despite the recent political violence.
In the past three to four weeks, Mr Paiboon said, foreign investors had begun returning to invest in the Thai bourse following the sell-off of Bt30-40 billion during the political turmoil.
The foreign investors had begun investing in blue-chip stocks, but not in the energy sector which has a large market capitalization.
Should investors turn to invest in energy stocks, he said, it would help boost the rally of the Thai bourse. However, since Thai stock prices had increased rather rapidly thanks to the growth of the investment portion of small investors to 40 per cent from 20 per cent, people wanting to invest in the stock market now must be wary of a profit-taking.
In addition, they had to take into account risk factors to the market including the global economic problems and Thailand's domestic political uncertainty.
Should the political situation heat up again, he said, foreign investors might dump their shares to avert risks. (MCOT online news)
