The Stock Exchange of Thailand (SET) index is expected to hit an all-time high of 1,860 points during mid-year, supported by Thailand's continued economic recovery and listed firms' net profit growth, says Bualuang Securities (BLS).
This high is projected to occur between May and June as the country's full-year GDP growth is expected to expand by 4% in 2018, said BLS executive vice-president Chaiyaporn Nompitakcharoen.
"Listed firms usually record their highest net profit growth in the first quarter, with earnings-per-share expected at 110 baht, an 11% increase from the previous year," said Mr Chaiyaporn.
"There could be an upward revision to our forecast of listed firms' net profit if the ratio expands at a good rate in the first half," he said.
BLS projects the bourse's price-to-earnings ratio at 17 times this year.
The Thai bourse rang in the first trading day of the year on an upbeat note, with the gauge posting an all-time closing high of 1,778.53 points, eclipsing the previous record of 1,753.73 set on Jan 4, 1994.
The main investment risk affecting investors' sentiment comes from the European Central Bank and the Bank of Japan, which could start reducing the supply of money, said Mr Chaiyaporn.
Regarding Thailand's general election roadmap, a three-month delay in the general election is not expected to stir a negative sentiment among investors, but if the election is delayed by one year then the SET index could experience a correction, he said.
Separately, the SET yesterday posted a notice reminding 20 listed companies, which are subject to a possible delisting and have been given until March 31 for rehabilitation, to expedite necessary correction in the causes of delisting and to submit their applications either to be removed from delisting status or for the extension of rehabilitation.
Chuo Senko Thailand Plc is among those 20 listed firms. The Securities and Exchange Commission (SEC) yesterday requested the firm cooperate with its auditor regarding the auditing of the company's financial statements for the first three quarters of 2016.
"Earlier, Chuo Senko's auditor expressed a qualified opinion in the auditor's report on the financial statements for [the first two quarters of 2016] because the auditing scope was limited by the company's executives," said the SEC statement.
"Consequently, the auditor was unable to find sufficient evidence to justify the management's decision to execute transactions for investment in two associate companies."
