Thailand's benchmark stock index, the best performer among Asia's major equity markets in 2012, will gain at less than half last year's pace as corporate earnings growth slows, according to BBL Asset Management Co.
Stocks will offer returns close to companies average earnings growth of 15% in 2013, said Voravan Tarapoom, chief executive officer at the fund, which oversees about $7.5 billion of assets. The firm manages the BBL Bualuang Top-Ten Fund (BTP), which rallied 76% last year, making it the best performer among 196 equity funds based in Thailand, according to data compiled by Bloomberg.
Investors should expect much lower returns from Thai equities this year to reflect companies earnings, Voravan said, declining to give a specific forecast for the index. The market will remain volatile because of concern that global economic growth may falter and the excessive valuations for some stocks, she said.
This article is older than 60 days, which we reserve for our premium members only.You can subscribe to our premium member subscription, here.