.jpg)
The Stock Exchange of Thailand (SET) has recently led a number of listed companies on the “SET & CLSA EU-UK Outbound Roadshow 2014”, during May 19 – 23. Investors’ interests were focused on two main issues namely the fundamentals of Thailand’s listed companies and the political situation which could affect the local economy and growth prospect. The key decision-making factors of investors in European Union and United Kingdom were the clear direction of Thai politics after the recent imposed martial law, as well as the continuation of various development projects to promote growth.
SET Executive Vice President Chanitr Charnchainarong said that this roadshow in Scotland, England and France has been a success, participated by over 100 international institutional investors. Altogether 200 meetings among investors and representatives from eight Thai listed-firms will have taken place towards the wrap-up on May 23.
“International fund managers have been enthusiastically enquiring information on participating listed companies’ fundamentals, vision, future projects and financial position as well as updates on Thailand’s political situation and its impact on the country’s economy. They were particularly concerned on the impact on economic fundamentals, the recovery speed of various government projects investment, including the investment risks if the situation deteriorated. In addition, they questioned Thailand’s position to compete in The Association of Southeast Asian Nations and on the international stage. However, these fund managers have continuously expressed interest in investing in Thai securities. Therefore, our commitment to continue providing updated information is significant in helping them better understand Thailand and assuring foreign funds to invest in the country,” said Chanitr.
Ekniti Nitithanprapas, deputy director-general of the Fiscal Policy Office, Ministry of Finance, who has also participated in the roadshow, said that foreign investors have been particularly interested in Thailand’s economic fundamentals and key economic drivers, such as the government budget disbursement and investment projects, as well as the fiscal and financial strengths, monetary policy and possible slowdown in foreign direct investment. Ekniti has assured foreign investors that Thailand still possesses sound fiscal and monetary status and has high level of international reserves, while state budget disbursement still continues as usual although new investment projects have to wait for the new government formation. He has also provided economic data of how the Thai economy could be revitalized after several political crises in the past to illustrate how strong the country’s economic fundamentals have been.
Prinn Panitchpakdi, country head of CLSA Securities (Thailand), said that the current political situation in Thailand was unprecedented. Therefore, investors need to be explained to better understand. They generally believe that political uncertainties do affect key investment decisions with long-term impact. Prinn added that, for foreign investors, the resolution of Thailand’s political turmoil is a major factor that will lead them back to invest in the country. Securities valuation is their key investment decision-making element and they will select certain stocks at reasonable prices.
The roadshow to Europe has been arranged under the cooperation between SET and CLSA Securities (Thailand), scheduled in Edinburgh, London and Paris during May 19 - 23. Eight listed companies have taken part in this trip, including Bangkok Dusit Medical Services pcl (BGH), Dynasty Ceramic pcl (DCC), Home Product Center pcl (HMPRO), Mc Group pcl (MC), MCOT pcl (MCOT), PTT Exploration and Production pcl (PTTEP), Thoresen Thai Agencies pcl (TTA) and WHA Corporation pcl (WHA), whose combined market cap currently stands at around THB 1 trln (approx. USD 30.7 bln) or about 8% of the total market cap.
The trip has also been joined by Dr. Ekniti Nitithanprapas, Deputy Director-General of the Fiscal Policy Office as a government representative to share information on Thailand’s overall economic conditions to foreign investors.
