Market Update 17/11 – 21/11
Foreign buyers are still coming into the market and everyone is looking forward to LTF’s and RMF’s buying next month to keep the market buoyant – why people don’t just buy the LTFs monthly doesn’t make sense to me. China also just joined the printing money, keeping interest rates low central bank model with its reduced deposit rate and lending rate (a first in 2 years). So we are facing markets that have Japan pushing through liquidity, China pushing through liquidity, Europe most likely to continue pushing liquidity, the US withdrawing liquidity – boggles the mind doesn’t it? Oh yes the Thai Cabinet to meet on 25 Nov. It will discuss the details of the MoU with China regarding the dual track railways.
Mike
What do you make of LTFs?
Mike
Pon
That’s a fairly open ended question – but ok, I like them, great tax benefits, forces people to save money.
Mike
I agree. Some people need that little push to save the pennies.
One more thing, Pon.
Which of the Thai insurance companies do you like?
Mike
Pon
ooooooooooffff, that’s going to take time to answer mike..but ok i’ve liked AYUD this year it will grow on the back of allianz’s numbers.
Mike
Thanks for that.
I don’t understand why SMK is trading for 486.00 with a market cap of 9,720.00. Is this normal?
The financials etc. look good for SMK but its low market cap and trading volume put me off as a long term investor. Why is its trading volume so low?
Mike
Pon
1) Insurance is an oligopoly
2) the Insurance industry still has a long way to go, penetration rates are still very low compared to the developed world
3) SMK has been growing 20% p.a.m its probably trading @ 10x for this year’s earnings
4) I think it anyone that could would buy shares in it.
5) They have no reason to increase liquidity as they are within the SEC’s requirement for free float listing.
Mike
Thanks for your great answer.
Mike