Finansia Syrus Securities (FSS) stated via the “Kaohoon Jor Talad” program on Friday that the current level of the Thai stock market presents an attractive opportunity for long-term investment as the index is at a low level, making it an ideal time to start investing and saving through the stock market.
The Thai stock market previously had a gap at the level of 1,157 points, which occurred during the COVID-19 pandemic when the index fell to 900 points before recovering. However, selling pressure from foreign investors remains a key factor weighing down the market at present. If this pressure decreases, there’s potential for the Thai stock market index to rise above 1,200 points.
Meanwhile, foreign investors perceive that the Thai economy is growing at a slow rate, which is a major factor driving outflows of investment. Additionally, other pressures to closely monitor include domestic economic conditions, political issues, and the significant net sell-off by foreign investors, which has accumulated to nearly 30 billion baht in the first three months of the year.
Concurrently, trade wars continue to cause concern in global capital markets, prompting investors to shift their funds into safe-haven assets like gold.
For investment strategy during this period, the analyst recommended investors utilize the ‘selective buying’ strategy on stocks that have experienced significant price declines and are undervalued based on their fundamentals. Interesting sectors include banking (KBANK and BBL), healthcare (BDMS), and tourism (MINT).
If the index can maintain around the 1,150-point level, there might be sideways movement. A reduction in foreign investor selling pressure, along with the index rising to 1,200 points again, could boost investor confidence and potentially attract investment back into the Thai stock market, enhancing overall investment stability in the future.
