An opportunity to buy foreign assets at cheaper prices is afoot as numerous negative factors, especially the coronavirus outbreak, drive down asset valuations globally, says Asia Plus Securities (ASP).
ASP chairman Kongkiat Opaswongkarn said global asset prices are declining across the globe, with London properties identified as having long-term value because the city remains one of the top tourist destinations and education centres in the world.
"It is a good time and a good opportunity for buyers to purchase cheaper assets," Mr Kongkiat said. "London is still a market with potential for long-term returns."
Almost every business sector has been reeling from the impact of the virus epidemic, he said. Global economic growth faces severe repercussions if the crisis does not end by April, with lower growth momentum possible in every quarter of 2020.
"Sometimes we cannot say what kind of businesses have the most growth potential, since this depends on prices and negotiating deals," Mr Kongkiat said. "However, whenever a crisis erupts, people want to sell their fixed assets to hold cash. If investors have long-term savings, they could wait until economic conditions nearly hit a trough, then acquire assets at cheaper prices. There is still an opportunity amid a crisis."
ASP has an investment portfolio of roughly 4 billion baht, a sum used to invest in overseas and domestic assets.
Kongkiat: Good opportunity for buyers to purchase cheaper overseas assets. Tanaphon Ongarttrakul
Mr Kongkiat said ASP aims for revenue growth of 10% this year, driven by investment in assets with growth potential and in overseas countries, together with the firm's mutual fund and asset management businesses.
ASP is a securities firm with a diversified asset portfolio. It has expanded into other finance businesses, including investment banking, wealth management and capital management, during the past five years. These attributes help shield the company from uncertainty, he said.
For mutual funds, ASP will focus on yield plays, especially real estate investment trusts and infrastructure funds in Thailand and Singapore, as global central banks are expected to introduce further monetary stimulus and boost returns on property investment.
In 2019, the company's reported revenue was 1.92 billion baht, with a net profit of 359 million baht.
For Thailand's stock market, the outlook remains bearish because of weak economic growth and a negative earnings per share projected among SET-listed firms this year versus last year, Mr Kongkiat said.