The Stock Exchange of Thailand (SET) is expected to skyrocket to 2,000 points next year, propelled by strong economic growth momentum led by the banking and telecommunications sectors, says securities analysts.
Terdsak Taweethiratham, vice-president at Asia Plus Securities, said the bourse is expected to reach 2,000 points next year because of stronger economic growth and foreign investors returning.
Mr Terdsak said digital trends will make information and communications technology stocks interesting for long-term growth prospects.
"Smartphones will have more content and customer services, especially concerning financial services and payment," he said.
"However, technological changes still present risk for the sector and investors have to actively monitor investment in such stocks."
The SET is expected to remain around 1,700 points this year, with interesting stocks at the end of the year those in the banking sector, industrial estates and healthcare, said Mr Terdsak.
Kongkiat Opaswongkarn, chief executive of Asia Plus Group Holding Plc, said the Thai bourse has upside potential for next year because economic growth is projected at 4.2%, but major economic sectors will be pressured by high competition and volatility in global oil prices.
Banks are expected to benefit from the government's Eastern Economic Corridor project, with the telecom sector related to digital innovation and technology are projected to benefit from the trend of businesses adopting digitalisation, said Mr Kongkiat.
He said emerging markets such as Vietnam and China are considered the most interesting equity markets next year because of their growth potential, while the US and Europe also caught his eye as the country has sophisticated technology and digital stocks with future growth potential.
"Thailand has minimal digital stocks, but investors can look to global equity markets, especially in the US or Israeli startups to capture high-profit opportunities for the long run," said Mr Kongkiat.