Investing professionally requires a full understanding of markets, economic conditions and the laws of the country that you’ll be investing in. Thailand’s economy may be in a slump, but the country’s stock market is a wise investment portal for professionals to consider when trying to adjust their portfolio’s foreign investments.
1. Ignore the Short-term
Thailand’s economy is in a slump, and the short-term outlook and performance should be ignored. Find companies that are worth investing in for the long-term. Short-term investments are not likely to be fruitful.
2. Do Your Research
There are a lot of poor performers on every stock market, but when investing in foreign companies, you want to sit down and really do your research. Look at past and current reports and release statements to get a better understanding of the company you plan on investing in.
3. Watch for IPOs
The SET has updated listings on IPOs, and a few coming up this year, include:
- TPBI Public Company Limited (TPBI)
- Bangkok Expressway and Metro Public Company Limited (BEM)
- Star Petroleum Refining Public Company Limited (SPRC)
Getting in on the ground level for IPOs can be very fruitful.
4. Bonds Don’t Perform Well
Thailand’s bond market is performing terribly. Yields are down for all bonds except for the 6-month and 1-year bonds that have risen 0.0031% and 0.0454% respectively. Bonds may not be the best investment portal due to the uncertainty of the country’s future under the junta.
5. Agriculture is Big
Thailand is a large agricultural portal, and you need to proceed with caution. Droughts this year are hurting many in the sector, but agriculture will remain one of the country’s biggest sectors for the foreseeable future.
6. Real Estate is Booming
Real estate in the country is booming. Property and construction companies are a smart investment choice. REITs are available, too, which allow you to invest in property funds and diversify your holdings.
7. Tourism is Huge
Thailand is still one of the biggest tourist destinations in the world. Several companies in the tourism & leisure sector have remained profitable for years. Laguna Resorts & Hotels is one company to consider in the tourism industry.
8. Internet Businesses are on the Rise
Thailand was slow to get into the Internet and online sectors, but the country is slowly picking up steam in these industries. With recent 4G licenses on auction, the mobile sector in the country is predicted to boom in the next 5 years.
9. Stick to Major Domestic Companies
Major domestic companies are a smart choice for long-term investments. Thai Airways International PLC (THAI) is a prime example of a major domestic company in Thailand that deserves attention from foreign investors.
Investment in Thailand plunged last year, and foreign investment was down 78%. The drop in foreign investment allows for ample investment opportunities in the country. Slow GDP growth and economic uncertainty are set to plague Thailand over the short-term, but it’s a favorable environment for long-term investors.
As Thailand’s mega projects continue to progress, investment will be needed to fund them, which also provides ample opportunity for foreign investors.