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Invest Thailand: Optimism rising fast after floods
Charamporn Jotikasthira
BANGKOK: -- Reactivating confidence in Thai investors after last year's flood is one of the most crucial missions of the Stock Exchange of Thailand (SET).
The SET believes that Thais can propel Thais and move Thai businesses forward no matter whether conditions are positive or negative.
The flood crisis in 2011 damaged Thailand's people and businesses, ranging from small and medium-sized enterprises to large companies, and brought an unavoidable effect on the nation's economy and investment. Now that the waters have receded, the main obligation of every organisation is to restore confidence and revive people's livelihoods, business operations and investment in order to return to normal conditions quickly.
Some listed companies were hit by the disaster but were able to successfully fight it and have survived the crisis stronger than ever. Listed firms in many industries were even able to use the crisis to create business opportunities. In a survey of 198 companies by Securities Analysts Association, many firms, amounting to more than three-quarters of respondents, estimated that the floods would affect their 2012 revenues by less than 10 per cent, and, in many cases, would have no impact at all. Moreover, almost 90 per cent of respondents indicated that they did not plan any job cuts due to the natural disaster. These survey results give us great hope, and offer the conclusion that the flood has not had that much affect on business at listed companies. Some companies even forecast business opportunities as a result of the floods.
"Thais propel Thais to move Thai businesses forward" is the motto adopted by the SET, aimed at stimulating investors and pointing out that the overwhelming majority of companies listed on the SET are still promising short-, medium-, and long-term investment products that remain attractive alternatives for prudent investors. These will be presented in a campaign called "Invest Thailand".
Meanwhile, global investors are increasingly placing their funds in developing countries, including those of the Asean. The Thai bourse is one of two Asean stock exchanges that the world's leading index provider, the FTSE group, has classified as an Advanced Emerging Market, in recognition of Thailand's improved capital market infrastructure and integrity. This acknowledgement has boosted confidence and attracted more investment from abroad into Thailand.
The SET index has also started 2012 by rising about 9 per cent to date, signaling a quick recovery of Thai businesses and investment after the flood crisis hit the country hard in October and November. Meanwhile, this year's net purchase of Thai stocks by foreign investors has so far amounted to Bt21,033.28 million (January-February 8).
The campaign "Invest Thailand" will focus on building confidence in Thai listed companies benefiting from flood rehabilitation and having the potential to continue recovering strongly. Importantly, "Invest Thailand" will provide investors with post-flood investment opportunities throughout the first quarter of this year.
The next event of the campaign is the Invest Thailand Fair 2, a full-service investment festival to be held February 18-19. The event will feature intensive seminars and talks, with online investment techniques and investment plan guidance from leading brokers.
As Franklin D Roosevelt once said, "We have nothing to fear but fear itself". His famous words also apply in our current situation, where prudent investors should not be fearful of changes brought by the deluge, but see the opportunities presented to them, gain increasing confidence in the potential of their firms, and put Thai businesses back on the road to rapid recovery.
Charamporn Jotikasthira is president of the Stock Exchange of Thailand.
-- The Nation 2012-02-10
