sharemarket could rise by another 12 per cent as the rebound in consumption and investment in the wake of the nation's worst floods in almost 70 years..
Thailand's sharemarket could rise by another 12 per cent as the rebound in consumption and investment in the wake of the nation's worst floods in almost 70 years boosts corporate earnings, according to Kasikorn Securities Co.
The benchmark Stock Exchange of Thailand (SET) Index could climb to as high as 1,350 points in the third quarter, Kavee Chukitkasem, an investment strategist at top-ranked Kasikorn Securities, said on Friday.
That would be highest level since April 1996. Investors should buy banks and energy shares, which may lead gains in the index as loan growth accelerates and fuel prices climb, he said.
"Thai equities still have more room to gain with a fast rebound in consumer and business spending following the floods," said Mr Kavee. "Earnings of banks and oil companies will sustain solid growth after their spectacular performance in the first quarter."
The SET Index has jumped 18 per cent this year, the third- best performer in Southeast Asia, as overseas investors bought a net US$2.7 billion of Thai shares on optimism the government’s increased spending on reconstruction after the floods will bolster investment and consumption.
Prime Minister Yingluck Shinawatra has pledged to spend 350 billion baht ($11 billion) on infrastructure and the Bank of Thailand cut interest rates to spur economic growth.