Kasikorn Asset Management (KAsset) stated that it maintained a positive outlook on the Thai stock market, expecting SET Index to reach 1,600 points at the end of 2021 on vaccine optimism and the returning of tourism.
The coronavirus vaccines that are expected to be available in mid-2021 would likely relieve the pandemic situation in Thailand, resulting in the returning of tourist arrivals. The tourism sector generated 13% of the value to Thai GDP in 2019 in which KAsset believed the returning of tourist arrivals would bring the Thai economy to its recovery in succession.
Moreover, KAsset added that the growth in the Thai stock market will be supported by;
1) the fund flows in the emerging markets in response to the US-elect Joe Biden’s campaigns that benefit Asia markets, coupled with the weakening greenback. KAsset expected the trends to continue due to the softening policy rates in the U.S. and the continuing stimulus plans that will be delivered much easier.
2) Global policy rates remain low and constant liquidity injection.
3) KAsset expected Thai GDP in 2021 to expand 2.6% from government spending, while exports will be limited due to baht appreciation and the not fully-recover economy globally.
4) KAsset forecasted the net profit of Thai listed companies to recover around 30% in 2021.
Nevertheless, KAsset advised that investors should monitor the coronavirus situation in Thailand closely to see the development.