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Investors say stocks too expensive

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Two of Thailand’s biggest money managers say the surge in stocks that sent the benchmark SET Index into a bull market on Monday has gone too far, too fast. 

The nation’s Social Security Office (SSO), which invests pension contributions from local workers, is holding cash in anticipation of a market decline, Win Phromphaet, the SSO’s head of investments, said at a conference in Bangkok on Monday. Investors are too sanguine about the prospects for economic growth after the army seized control of the government on May 22, according to Prasert Khanobthamchai, the chief investment officer at Kasikorn Asset Management Co.

The money managers are sceptical the rally will last after the benchmark SET Index jumped 20% from this year’s low on bets the military government will fast-track measures to revive the economy. The stock measure is valued at 13.5 times estimated 12-month earnings, 14% more expensive than the five-year average. The MSCI Emerging Markets Index trades at a multiple of 10.9.

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