Thailand. State pension fund sees strong upside in local stocks
The Government Pension Fund will give more weight to the Thai shares in the second half, citing ramped up big-ticket infrastructure investment and the high price of foreign equities.
Yingyong Nilasena, chief investment officer at the GPF, said Thai stocks have an upside potential as state spending in infrastructure projects will boost the country’s GDP. This expanditure will increase local consumption and private sector expansion.
Moreover, Thai stocks are laggards in the region, while stock prices in developed markets have skyrocketed.
The Thai stock market has risen 2.6% so far this year to close the market at 1,582.36 points on Friday.
Even though shares in foreign markets are relatively high, the GPF still needs to retain a portion of money in assets abroad for diversification purposes, he said.
Full Content: Bangkok Post
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