Thailand’s benchmark stock index fell the most in more than two years as foreign investors cut holdings of the nation’s assets amid speculation the U.S. Federal Reserve will rein in its monetary stimulus.
Thailand’s benchmark index , the second-worst performer among Asia’s major markets this month, may rise about 19 percent in the second half as the government accelerates spending to meet policy pledges made in the run-up to elections on July 3, according to Kasikorn Securities Co.
Thailand’s stocks may gain a further 12 percent as a rebound in consumption and investment following the nation’s worst floods in almost 70 years boosts corporate earnings, according to Kasikorn Securities Co.
Investors should buy shares in Thai hospital, media and tourism companies on expectations they will outperform the market in a period of accelerating inflation, according to Kasikorn Securities Co. Ltd.
Thai stocks, trading at the highest level in almost three years after entering bull market, are still “under held” by foreign investors and remains among the cheapest Asia, Finance Minister Korn Chatikavanij said.
Thailand’s benchmark stock index , Asia’s best performer, rose to the highest level since 1996 and the baht gained as easing political tensions and improving earnings boosted confidence in Southeast Asia’s largest economy.
Thai stocks will rise 19 percent in the next year after the first monthly loss since September dragged valuations to a four-month low and the economy recovers from last year’s floods, according to JPMorgan Chase & Co.