SET index expected to reach 1,700 points this year

BANGKOK, February 13 (TNA) - The Stock Exchange of Thailand (SET) index is expected to move between 1,450 and 1,550 points in the first half of this year and to reach 1,700 points within this year due to several positive factors. Chakkrit Charoenmethachai, Managing Director of Globlex Securities Co., made the prediction on Wednesday, as money in several economies has increased by five times due to relaxing monetary measures introduced by the European Central Bank, the Bank of Japan (BOJ) and the US Federal Reserve (FED). Chakkrit said the SET index might, thus, move between 1,450 and 1,550 points in the first half of this year, boosted by excessive capital inflows into Asia, but there should remain a downside risk caused by selling orders as returns are lower than expected and trigger funds, which are buying shares when the stock index declines. Chakkrit, however, remained optimistic about the Thai bourse, propelled by the Thai government's continual economic stimulus, including its planned 2.3-trillion-baht infrastructure investment, foreseeing that listed companies in the Thai construction sector should particularly benefit from the new infrastructure investment. Besides, the securities executive recommended more investment in the shares of commercial banks, property developers and communication companies in Thailand, acknowledging that economic recession in the United States and European countries has already bottomed out. (TNA)