Amid the economy slow down, revenue cut, missing expectation, and GDP cut, there are still hopes for investors in the second half of 2019 to invest in Thai equities.
Reuters has reported that in the second half of 2019, Thailand is set to have the biggest funds raised from IPOs in Southeast Asia which is around USD 5 billion or approximately THB 160 billion, led by three of Thailand’s giant companies: PTT, Central and TCC.
Furthermore, Reuters states that investors are focusing on the country’s stable economic growth and currency and do not see any big risk from political uncertainty. Preliminary election results show Pheu Thai, the leading anti-junta party, has won the most constituency seats, while the pro-army Palang Pracharat gained the most votes, but each is unable to form a government on its own.
Investors are also attracted by low-interest rates and high-yielding assets which make investors allocate money for equities, fund managers said.
It is said that the funds raising from IPOs in the second half of 2019 will be the biggest in the region and largest for Thailand since 2013.
“One positive in Thailand is that domestic investor liquidity is extremely healthy,” stated Ho Cheun Hon, Credit Suisse
Investors had been waiting for PTTOR, a subsidiary of PTT to enter the stock market, which had been anticipated to be in the second quarter of 2019. However, there is still uncertainty whether Central will submit its subsidiary, Central Department Store, or not. Meanwhile, TCC plans to launch a $1 billion-$1.5 billion IPO in the second half of the year as well.