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Analysts look to positives amid N Korea tensions

TENSIONS over the stand-off between the US and North Korea could pressure global stock markets, say investment experts, though some note that concerns over the prospect of a French referendum on whether to leave the European Union may encourage capital to stay put in Thai and other emerging markets.

Warut Sivasariyonon, managing director for research at Asia Wealth Securities, said that the face-off between Washington and Pyongyang over North Korea’s nuclear programme was likely to persist as an issue that warranted monitoring by investors.

Despite North Korea’s failed missile launch last Sunday, global money markets are concerned over the escalating tensions and the risk of renewed conflict on the Korean peninsula, and investors may switch out of stocks into low-risk assets and that could affect the Thai bourse, he said.

Monthol Junchaya, chief investment officer at One Asset Management, said that the Stock Exchange of Thailand Index could be volatile over the coming weeks, pressured not only by the North Korean issue but the fallout from the US attacks strikes on Syria.

Topping concerns out of Europe is that two of the four leading candidates for France’s presidential election have vowed to hold a referendum on the country’s membership of the EU if they won. Polls indicate strong support for the two: the far-right’s Marine Le Pen and the far-left’s Jean Luc Melenchon.

This week, the SET Index is forecast to move in a range of 1,575 to 1,590 points, Warut said, warning investors to proceed with caution and an eye on external developments.

One Asset Management estimates the benchmark index will move in a range of 1,560-1,600 points.


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Joe Miller
the authorJoe Miller
I have been living in Thailand for over 20 years, witnessing the remarkable changes the country has undergone since the Asian Financial Crisis. Throughout my time here, I have lived Phuket, Samui, Hua Hin, and Chiang Mai, but ultimately, I always find myself returning to the bustling city of Bangkok. This dynamic metropolis served as the perfect setting for me to run a software development company and teach at universities. Nowadays, I embrace the digital world, with Bangkok as my home base. My unwavering belief in the enormous potential of Thailand and its people inspired me to create Thaivest. Through this platform, I aim to help individuals from around the globe discover how to thrive and make a fulfilling living in this captivating country.

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