Mr Wajana, left, says with Thailand's economy projected to grow by less than 2% annually for 1-2 years, SET market valuations look less appealing.
Kasikorn Asset Management (K-Asset) is advising investors to adopt a more selective approach to Thai equities after the benchmark index recently topped 1,600 points, saying the Thai bourse has already priced in many of the positive factors.Managing director Wajana Wongsupasawat said the Stock Exchange of Thailand (SET) is now trading at around 16 times earnings despite limited growth prospects for both corporate profits and the domestic economy.
According to K-Asset, the SET's earnings per share have been capped at around 95 baht over the past decade and are expected to remain near that level this year.
Meanwhile, the Thai economy is projected to expand by less than 2% annually over the next 1-2 years, making current valuations appear increasingly stretched, he said.
K-Asset also highlighted market concentration risks, noting recent gains have been driven primarily by a handful of large-cap stocks in technology-related and specialised sectors, rather than by broad-based participation.
