SET chief highlights opportunities to invest in certain sectors

He made the remarks during his speech at “Investment Forum 2024” organised by Nation Group’s media arm, Krungthep Turakij. The Thai stock market has seen a sharp fall due to uncertainty over the country’s political situation and the economic slowdown.

The index on Friday afternoon was at 1,301.18, down 0.63 per cent from Thursday’s close. Transaction value, meanwhile, totalled 27.17 billion baht at the time of writing this report.

Pakorn expects the Thai stock market to gain positive sentiment from an increase in exports, higher domestic consumption and government spending in the second half of this year, which could expand Thailand’s gross domestic product (GDP) by 3%.

He confirmed that the Thai financial system was still very stable and liquid, with a low public debt-to-GDP ratio at 64 per cent and foreign exchange reserves at 19.7 per cent.

“If the government launches more economic stimulus measures, the Thai stock market will rise,” he said, adding that those measures would also boost the profits of SET-listed companies.

Pakorn said seven categories of businesses still have room to grow significantly, including those that benefit from tourism, government stimulus, business relocation, exports, sustainability trends and transition to a new economy. Businesses that pay dividends constantly are also expected to grow further, he added.

Although the Thai stock market is not attractive, he said SET still has businesses that would grow sustainably, including food, tourism, healthcare and renewable energy.

He said that Thai politics had less impact on the markets compared to the economic situation, saying that measures to stimulate the capital market were gradually launched in the second half of this year, such as Thailand ESG (environment, social and governance) fund, and rules to enhance the capital market along with boosting confidence among investors.

Eastern countries’ move to reduce the interest rate could attract foreign investors to invest in Thailand’s stock market and bring in foreign direct investment, he added.

Pakorn said volatility in the economy and the capital market was both an opportunity and risk for investment. He advised investors to consider factors, including geopolitics and government policies, inflation, monetary policies and household debt, economic recovery and environmental risks like flood and drought.

He pointed out that share prices were currently lower than the average price over the past five years, and they could rise in response to Thailand’s K-shaped economic recovery. “Analysts expect companies' performance and the economy to move in a positive trajectory in the future,” he said.

Pakorn said the fall in the Thai stock market was an opportunity to invest, but warned investors to be careful in picking stocks. Some stock categories have not recovered yet, such as IT, food, agriculture, energy and finance, he said, adding that some categories have recovered significantly, such as tourism and hotel, he said.