Salient to Investors:
Mark Matthews at Julius Baer said the sell-off of Thai assets is not over and the protests will weaken Yingluck’s ability to increase investment in the economy – no one is itching to buy this market.
Joel Kim at BlackRock said the Thai baht is one of our bigger underweights.
Adithep Vanabriksha at Aberdeen Asset Mgmt said the weakening economy is more worrisome than the protests as it will affect earnings.
The SET Index is at 2.1 times net assets, a 39 percent premium versus the MSCI Emerging Markets Index, the smallest gap on a weekly basis since September 2012.
Petcharat Powattanasatien at Kasikorn Asset said the market should rebound strongly as soon as this political deadlock is resolved.
Thailand has had 9 military coups and more than 20 prime ministers since 1946.
Abdul Jalil Abdul Rasheed at Invesco Asset Mgmt said people still use mobile phones, buy the necessities, have banking products, and life goes on – this sort of democracy only happens in Thailand.
Kokusai Asset said the baht will remain weak as protests add to investor concerns about subdued exports and the current-account deficit. Takahide Irimura at Kokusai Asset said the longer this situation lasts, the more impact we will see on the economy – the outlook on the market and on the economy looks poor.
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