Thailand’s Phatra Securities and US-based Merrill Lynch indicated that the Thai stock market ended almost unchanged in July as foreign investors continued buying Thai stocks after an initial selloff following a number of downgrades of Thailand.
“Low valuation provides strong support, but we believe negative news flow will continue to cap upside in the short term. We are optimistic about late 2H given our expectations of C/A improvement, seasonal recovery in tourism and exports, and increased Government spending in 4Q.”
Thailand Current Account Deficit Should Peak in June
Thailand’s current account deficit was US$1.5bn on the back of a US$1.8bn trade deficit combined with weak service account surplus. Former Minister of Finance Dr. Somkid Jatusipitak pointed out, however, that preliminary trade figures showed a deficit of less than US$300mn in July.
“Low valuation provides strong support, but we believe negative news flow will continue to cap upside in the short term. We are optimistic about late 2H given our expectations of C/A improvement, seasonal recovery in tourism and exports, and increased Government spending in 4Q.”
Thailand Current Account Deficit Should Peak in June
Thailand’s current account deficit was US$1.5bn on the back of a US$1.8bn trade deficit combined with weak service account surplus. Former Minister of Finance Dr. Somkid Jatusipitak pointed out, however, that preliminary trade figures showed a deficit of less than US$300mn in July.