Societe Generale SA shifted to overweight Thai equities as the nation reported the biggest increase in gross domestic product in more than four years. The SET Index has increased just 1.8% this year in local-currency terms, trailing gains of 11% in Indonesia’s benchmark gauge and 18% in India. The SET Index has a 12-month price-to-earnings ratio of 14.6, compared with 12.6 for the MSCI Emerging Markets Index. Earnings growth momentum should shift from commodities to domestic sectors in 2018, led by financials, Societe Generale said. “It’s a positive surprise that should offer some life to Thai equities,” said Monthol at One Asset Management, which oversees around $3 billion.

Source: Bangkok Post August 22, 2017 04:52 UTC