Pakorn Peetathawatchai, executive vice president and head of corporate strategy and finance division at the SET, said that the dangers of a trading bubble in investments involving so-called crypto-currencies hung over the investment landscape for next year.

Digital currencies are becoming popular across Asia, including Thailand. Bitcoin, the world’s biggest and best known crypto-currency, has been surged past all-time highs and, along the way, is feeding fears of a bubble. If any irregularities occur, these could affect the broader investment market, Pakorn said.

“One of the risks that we will monitor next year is trading bubbles. Speculation in digital currencies has been high,” he said. “Digital currencies depend on demand and supply without any other support factors. We have to monitor if any situation happens, and whether or not it will affect the overall investment market.”

In regard to the Thai bourse, listed companies should continue to grow despite the sluggish economic growth, thanks to the diversification in their income bases, he said.

In 2016, the return on investment for foreign investors stayed at about 20 per cent after the SET Index’s 10 per cent rise and the baht’s momentum.

Kesara Manchusri, SET president, said that the overall risks to investment extended from the extent of rises in the US benchmark rate to conflicts in the Middle East, which could be seen early next year.

Domestically, she expected the economic recovery to continue, indicating a stock exchange investment could provide the best return.

Of the total investors in the Thai exchange, half are individual investors and the remaining half are both foreign and local institutional investors. Earlier, individual investors made up 60 per cent of total investors The SET will focus on enlarging the investor base, increasing the quality of listed companies with bigger sizes and more trading liquidity, Kesara said.

Fund mobilisation through the SET also came as targeted and fundraising through primary and secondary markets is expected to reach Bt600 billion this year, she said. The target was set at Bt500 billion.

Next year’s fund raising through both primary and secondary markets is forecast at Bt550 billion with more than 30 new listings, she said.

Meanwhile, Asia Plus Securities is bullish about the Thai stock market next year despite the risk of capital outflows should the US Federal Reserve raises rate as planned.

The Thai benchmark stock index is likely to reach a record high at 1,815, up from 1,766 previously forecast, said Porranee Thongyen, senior executives vice president of Asia Plus Securities.

Asia Plus expects to see more gains next year due to a sustained recovery in both global and local economies. The International Monetary Fund estimate that the global economy will expand 3.7 per cent next year, slightly up from 3.6 per cent this year.

 Asia Plus predicted that Thai economic growth will accelerate next year to 4.2 per cent, up from estimated 3.8 per cent this year.

 Regarding the Thai stock market, Porranee said Asia Plus estimated growth earnings per share would be 14.5 per cent next year, up from 4.7 per cent this year.

Source: http://www.nationmultimedia.com/detail/Economy/30334490