Thai analyst expects more capital inflows in 2016

BANGKOK, January 20 (TNA) - An executive analyst foresees that the Stock Exchange of Thailand (SET) should experience fluctuations due to capital outflows only in the short run, but it should attract more capital inflows later this year. Supaporn Leenabanchong, Acting Chief Investment Officer of Bangkok-based Krungsri Asset Management Co, made the assessment on January 19, saying that the SET index should be rising to stand about 1,432 points at the end of this year. Supaporn elaborated that the Thai government's new mega-investment projects should be clearly witnessed by the end of the second quarter of this year, which should then attract more capital inflows to the Thai bourse. Supaporn projected that Thailand's economic growth rate this year should, thus, moderately stand at about 3.2 per cent, cushioned by domestic tourism, the government's investment and spending and rising private consumption boosted by official economic stimulus measures and accelerated state budget disbursements. However, Supaporn warned, Thailand's economic growth might not reach the target if the economies of trading partners did not expand as anticipated, citing as an example that China's economic slowdown could result in a zero growth or even a shrink in Thai exports for the fourth consecutive year in 2016, while the prices of Thai commodities and farm products should remain low this year. The executive analyst also predicted that the Bank of Thailand (BOT) should maintain its key interest rate, or the repurchase rate, at 1.50 per cent throughout this year to support the gradual recovery of the Thai economy. (TNA)