Inflation jumped the highest in 25 months in December

THAILAND’S consumer price index, or inflation, rose by 1.13% in December compared to the same month in 2015 with this being the biggest jump in 25 months, Thai News Agency quoted the Commerce Ministry as saying today (Jan. 4).

While December’s inflation rate was the highest in a very long stretch, the rate for 2016 was 0.19%, the ministry said, adding that it expects inflation to be around 1.5-2% in 2017.

Meanwhile Globlex Securities also said today that Thai stocks are being spurred ahead by domestic economic measures in 2017 with SET Index likely to move within a framework of 1,320-1750 points even though the US Federal Reserve has signaled that it will increase interest rates another two to three times this year.

Wilasinee Boonmasugsong, Globlex Securities’s research director, said the Thai stock market will likely fluctuate more in 2017 than 2016 from expectations that Fed will hike interest rates two to three times this year with this affecting investment inflow. Another factor is the uncertainty that clouds Brexit.

However there are positive factors bolstering the Thai bourse with the chief one being large projects moving ahead, especially the 36 transportation projects worth a total 890 billion baht. Bidding and contract signing will take place in the first half of this year while construction will start in the second half.

The second important factor is election at the end of this year according to National Council for Peace and Order’s road map.

According to Chaiyot Chiwangkul, another research director at Globlex, the SET Index should move within a framework is 1320 to 1750 points with this being linked to expectations that the economy will grow at 3 to 4% in 2017 and on the premise of dividend being 12.4% and PE ratio being 13 to 15 times.

Regarding investment in gold, Suthipong Sripornprasert, a Globlex analyst, said the price will likely slide further in 2017 due to expectations of Fed increasing interest rates. Support is at 1,050 -1,020 dollars an ounce while resistance 1,270 – 1,330 dollars an ounce.


Top: A matchcover detail showing economy’s impact on supermarkets. Photo: Wackystuff (CC-BY-SA-2.0)


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