SET to remain resilient, experts predict
Experts foresee resilience in the Stock Exchange of Thailand, citing emerging investment opportunities in artificial intelligence (AI) and data centres as key drivers for attracting foreign direct investment.
Financial services firm JPMorgan regards the Thai stock market as still appealing, particularly with lucrative offerings from the Entertainment Complex, which is poised to pave the way for growth in the data-centre and AI sectors, supporting a new economic paradigm, or "new S-curve".
Marco Sucharitkul, senior country officer for JPMorgan Thailand, said, “We still see the Thai stock market as attractive for investment and that there are opportunities for growth in the future. However, it may be necessary to find new stock products or investments to stimulate more investment.”
Regarding the attractive sectors within the Thai market, he highlighted the comprehensive entertainment project.
“The Entertainment Complex is a very new and interesting plot. Thailand already has a good foundation in the field of services, which will be very positive for the economy,” he noted.
Marco further emphasised that when a new and different industry comes in, it will definitely create a boost for the economy, as well as the Thai stock market, to be better than before.
He also noted that businesses related to data centres are garnering interest globally, marking them as the future of investment, while renewable- and clean-energy stocks are anticipated to contribute to the Thai stock market's new S-curve.
Ayaz Ebrahim, JPMorgan asset management CEO for Singapore and Southeast Asia, echoed the sentiment regarding growth: “The Thai stock market will have higher growth in the future, and new industry groups may need additional support.”
Ebrahim identified AI technology as a pivotal driver of future developments, highlighting its capabilities for enhancing operational efficiency.
“The main purpose of using AI technology is to increase the efficiency of the work process,” he said, adding that AI can facilitate the analysis of vast amounts of data, providing valuable insights for businesses and industries.
He also pointed out that AI can help minimise operational errors and analyse consumer behaviour based on available datasets.
As businesses and industries strive for sustainable long-term growth, Ebrahim remarked, “AI is seen as a new world technology that cannot predict how far the future will develop, and the trend of increasing demand for AI is still rising.”
Furthermore, he identified clean and renewable energy as an attractive sector, anticipating a significant demand for energy in the coming years.
Additionally, Thailand's strengths in tourism and medical services contribute positively to its economic landscape. With foreign tourist numbers approaching pre-pandemic levels, projections for 2024 indicate continued growth, with further expansion expected in 2025.
