Aberdeen Asset Management expects "Thai stocks" to end the year at 1,560 points, suggesting debt funds to avoid global economic fluctuations.
Aberdeen Asset Management expects "Thai stocks" to end the year at 1,406-1,560 points, recommending small-medium stocks, good quality, growing leaps and bounds. More interesting than big stocks Advice on debt instruments Avoid global economic fluctuations
Ms. Darunrat Phiyodilokchai, Head of Equities at Aberdeen Asset Management (Thailand), revealed that Aberdeen maintains a positive outlook on investing in the Thai stock market and expects the SET index to fluctuate between 1,406 and 1,560 points this year. She believes the Thai economy will grow by at least 3%, exceeding last year's growth. Meanwhile, earnings per share (EPS) of listed companies are projected at 5%, a significant improvement from the previous year's -8%.
Mid-cap and small-cap stocks are seen as remaining attractive, especially those with growth potential and potential to drive economic growth, such as tourism and healthcare. These sectors will benefit from tourism stimulus policies aimed at attracting approximately 33-35 million international tourists this year.
Aberdeen focuses on selecting high-quality, high-growth mid-cap stocks that are currently undervalued. They recommend the Aberdeen Small-Mid Cap Fund (ABSM), a risk level 6 fund that invests in stocks listed on the Stock Exchange of Thailand with a market capitalization of no more than 80,000 billion baht on the trading day preceding the investment date.
And it has an investment policy focused on four main themes: tourism, medical and beauty, food and beverage.
Including groups that benefit from the trend of moving production bases to Thailand. It will benefit from foreign direct investment (FDI), which will have 20-30 stocks in its portfolio.
The 5 stocks that the fund holds the most in the portfolio are SISB, MEGA, WHA, HUMAN and PR9, as well as investing in CENTEL, MOSHI, etc. (Source: abrdn, as of 31 January 2567) with both options to choose from. Accumulated Value (ABSM), Savings (ABSM-SSF) and Retirement (ABSM-RMF).
Pongtharin Thrapiyanon, Head of Fixed Income and Asset Allocation, stated that he believes the overall global economy in the first half of the year will likely continue to face inflationary volatility, which will consequently lead to volatility in investment conditions. He forecasts a moderate global economic slowdown this year, with inflation expected to trend downwards, although there may be volatility along the way due to geopolitical risks.
While the US economy is likely to enter a soft landing phase, it is anticipated that the US has ended its interest rate hike cycle and that the Federal Reserve will begin cutting its policy interest rates towards the end of the second quarter of this year. The central bank is expected to cut interest rates more than the market anticipates, with the estimated range for 2024 being 3.25-3.5%, and gradually reducing rates until the end of the downtrend, reaching approximately 2.00-2.25% by 2025.
While Europe entered a period of economic slowdown in the last quarter of 2566, European economic growth in 2567 is projected to be at the same level as the previous year. Emerging market economies are also expected to continue expanding, but at a slower rate than the previous year. Furthermore, it is anticipated that interest rates in emerging markets will enter a downward cycle in the second half of this year, similar to developed markets.
Aberdeen recommends investing in investment-grade bonds because they are likely to be less affected if the U.S. economy experiences a more severe recession than anticipated.
Currently, investment-grade returns are at 6-7% per year, while emerging market bonds are attractive, and interest rates are trending downwards, especially in the second half of the year. Thailand is one of the countries expected to cut interest rates once in the second half, making bond investments appealing.
Aberdeen recommends bond funds and foreign stock funds. To diversify risk for market fluctuations, including:
- Aberdeen Global Enhancement Fixed Income Fund – Accumulated Value (ABGFIX-A) This fund has level 4 risk by investing through foreign master funds abrdn SICAV I – Short Dated Enhanced Income Fund, Class Z Acc USD.
The main fund's investment portfolio focuses on investing in high quality debt instruments around the world. To increase the opportunity to create returns on lower volatility. The master fund has a Yield to Maturity of 6.00% and an average maturity of debt instruments of 1.30 years (Source: abrdn, as of January 2567) - Aberdeen Global Dynamic Dividend Fund (ABGDD) Fund risk level 6 increases the opportunity to receive consistent returns along with investment growth. Focus on investing in outstanding stocks around the world A perfect mix of growth stocks
and value stocks through foreign master funds abrdn SICAV I – Global Dynamic Dividend Fund Z Gross MInc USD, available in both accumulated value type (ABGDD-A), savings type (ABGDD-SSF), automatic redemption type (ABGDD- R) and type for living (ABGDD-RMF) - Aberdeen American Growth – Smaller Company Fund (ABAGS) Fund risk level 6 by master fund abrdn SICAV I – North American Smaller Companies Fund Z Acc USD, looking for small stocks with a long-term future in the United States. with the potential to grow exponentially Focuses on investing in stocks from the United States or Canada. Available in both accumulated value (ABAGS) and savings (ABAGS-SSF) types.
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