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KS increases SET outlook

Kavee: Thai stocks not expensive

Capital inflows are projected to continue streaming into Thailand's stock market this year and next because of the country's economic recovery, says Kasikorn Securities (KS).

The Thai bourse is expected to receive fund inflows valued at 30-40 billion baht the rest of this year and some 180 billion baht next year, said KS deputy managing director Kavee Chukitkasem.

Investors are likely to favour large-cap stocks because of continued economic growth momentum, with certain stocks benefiting from public investment in mega-infrastructure development projects, said Mr Kavee.

The securities firm increased its target for the Stock Exchange of Thailand (SET) index this year to 1,650 points.

"Investment in Thai stocks remains attractive and has an upside gain as the SET remains above 1,600 points. Selective stocks in construction, property, electronics and consumption are comprise our medium to long-term investment strategy," he said.

"Thai stocks are not expensive compared with others in Indonesia and the Philippines, as the Thai bourse still has a higher price-per-book and dividend return than other regional markets."

Stocks that will directly benefit from public and private investments are STEC, CK, TICON, JWD, and AOT, said KS. It predicted stocks indirectly benefiting from infrastructure investment are SPALI, HMPRO, CPALL, CPN, CENTEL, MINT, BDMS, and BH.

The government will invest in infrastructure projects throughout this year and next, with construction and property companies to benefit from the outlays, said Mr Kavee.

The planned Eastern Economic Corridor (EEC) will have a total investment sum of 1.5-1.6 trillion baht over the next five years, with notable projects a high-speed train and dual-track railway, he said.

KS expects revenue in the construction sector will grow by 15.4% this year and 23.7% in 2018. Property stocks will benefit from new commercial locations along the EEC.

Separately, 152 companies listed on the SET and Market for Alternative Investment indices yesterday announced a combined interim dividend payment of 117.86 billion baht for this year's first half, up 23.6% year-on-year.

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