Maybank Kim Eng (MBKE) Securities Thailand has revised down its SET Index forecast for the second half, expecting foreign capital inflows to recede in the period due to a narrower interest rate margin and unattractive earnings per share (EPS) growth of listed companies. It now projects the Stock Exchange of Thailand index to end the year at 1,600 points instead of 1,650. The new forecast is based on assumptions of EPS growing around 6% and dividend yield around 3%, said MBKE assistant managing director Sukit Udomsirikul. "Telecom stocks are [also] hard to predict as the competitive structure has switched to marketing expenses to gain market share." "Hence, dilution risk has the potential to occur for listed companies in the next one to two years from now on," said Mr Sukit.

Source: Bangkok Post July 25, 2017 23:37 UTC