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US, China tech stocks more appealing than Thai shares in 2020: ASP

Thai stock market’s average earnings per share predicted to contract

A gloomy outlook for the Thai economy in 2020 is likely to result in a slowdown on the domestic stock market while US and Chinese tech stocks will be attractive to investors, according to Asia Plus Group Holdings Plc (ASP).
Kongkiat Opaswongkarn, executive chairman of ASP, said that the Thai economic slowdown is expected to adversely affect Thai listed companies’ earnings, and recommends investment in mega trends like tech stocks in the United States and China, both of which are enjoying strong economies.
Thai stock market’s average earnings per share (EPS) is estimated to contract this year from a year earlier, he said.
The US and Chinese stock markets are attractive and likely to reap good returns, given their robust economies despite being hit by the ongoing Covid-19 epidemic, he said.
Tech stocks are particularly interesting and structured products like fixed coupon rate (FCN) and bonds are attractive due to lower risks and regular returns, he said.
Last year, ASP recorded total income of Bt1.92 billion with net profit of Bt359 million. Of the total income, 40 per cent came from local and overseas securities trading, down from 45 per cent a year before, while 26 per cent was derived from mutual fund and asset management businesses, 16 per cent from capital market and investment banking, and 18 per cent from ASP’s own investment.
ASP targets income growth at no less than 10 per cent this year and is planning to penetrate growing businesses like overseas securities trading, mutual fund management, asset management and capital markets, he said. The group is regarded as the leader in fully integrated service providers in these industries.
The group continues to focus on diversifying sources of income from businesses to achieve stability in income generation.
This year, the group will concentrate on investment in yield plays, particularly real estate investment trusts (REITS) and infrastructure funds in Thailand, Singapore and worldwide as they are expected to provide higher returns than interest rates amidst global monetary easing.

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