As the Thai stock market has recovered rapidly over the past month in light of the improving economic picture, there are still some risk factors for shares in 2023 that investors should be aware of, analysts warn.
According to TISCO Economic Strategy Unit (TISCO ESU), positive factors that have boosted global stock prices over the past month include a resolution of the energy crisis in Europe, China's easing of Covid-19 restrictions, and a deceleration of the inflation rate, especially in the US. The positive trio has led the market to believe the US Federal Reserve will soon stop raising interest rates, and has eased investors' concerns over the risk of a recession this year.
But Komsorn Prakobphol, head of TISCO ESU, pointed out that the stock price rally over the past month reflected a much better economic outlook, and share valuations have risen to a high level. As a result, the Thai market is seen as having limited upside gains at the moment.
