Paopoom touts cheap stocks
Smart investors would realize it’s the right time to accumulate stocks with stock market sentiment, Deputy Finance Minister Paopoom Rojanasakul told reporters in Bangkok.
Smart investors will look at the underlying economic fundamentals and realize that the declining market presented a good time to invest, while less sophisticated investors will miss this opportunity to buy, he said.
Under pressure from frail economic growth outlook, muted corporates earnings and worrying effects from US President Donald Trump’s so-called tariffs, the Stock Exchange of Thailand (SET) index dived below 1,200 points on Friday, with no major rally in prospect, analysts said.
The SET index is forecast to move sideways down after registering a big market decline Monday, pressured by lackluster earnings results for the fourth quarter last year and fears over -Trump’s tariffs, analysts said.
Risk assets in emerging markets are under pressure from a trade war after Trump announced tariffs on Mexico and Canada.
Mr Paopoom also spoke on a poll that the people are not satisfied with the government performance. There were positive changes in all the economic figures in all quarters from last year, he said, except for the tumbling auto industry.
The auto sector aside, he said the economic numbers help should remain upbeat for the first quarter of this year.
An opinion poll conducted late last month by the National Institute of Development Administration found that most Thais were not satisfied with the performance of the government and Prime Minister Paetongtarn Shinawatra.
Mr Paopoom rebutted public criticism that the government was not conducting economic reforms, saying it was now pursuing several reform programmes, including the drafting of a financial hub law and a law to create the National Credit Guarantee Agency.
The critical elements of the financial hub draft law are the establishment of One Stop Authority Committee with powers to issue and revoke licences; issue tax and non-tax incentives to businesses thatinvest in setting up a financial hub in Thailand.
In February, the National Economic and Social Development Council set a growth target for this year of 2.3-3.3% on the back of higher government consumption and investment, strong domestic private demand, a robust tourism sector and continued expansion in exports.
The government aims to spur 3.5% economic growth this year by boosting export growth to 4%, which would exceed the Commerce Ministry target of 2%, along with increasing tourism revenue and recording foreign direct investment at no less than 400 billion baht.