Aberdeen New Thai
May 2021: An update from fund manager Orsen Karnburisudthi
We are cautiously optimistic about the near-term outlook for Thai equities. Despite the recent surge of Covid-19 infections, we remain hopeful that the swift rollout of vaccines should enable the country’s tourism and export-driven economy to recover over the course of this year. Local authorities hope the country should reopen fully by mid-October. We are also encouraged as investors have been returning to riskier assets despite the virus not yet being fully under control. Additionally, we expect further support for the domestic stock market, having observed a rotation from growth stocks into more cyclical ones that suffered during the selloffs at the peak of the pandemic. At the corporate level, we believe that Thai-listed companies are resilient and we expect that when the turnaround occurs, the Trust’s fundamentally robust holdings will recover, and sustainably so. As long-term investors, we remain confident that the portfolio’s high-quality underlying holdings, with steady credit lines, robust balance sheets, good cash flow and prudent management will stand the Trust in good stead beyond the current crisis.
Selecting quality companies from the dynamic Thai market