KAsset dividends on 3 funds

Kasikorn Asset Management (KAsset) will pay dividends totalling Bt270 million on three funds, all of whose yields beat the Stock Exchange of Thailand average for 1012.

Prasert Khanobthamchai, executive vice president, said yesterday that all three funds showed strong operating results, with K-EQUITY recording a gain of 12.12 per cent, RKF-HI 12.02 per cent and KSDLTF 3.22 per cent. All three funds beat the average market yield of 2.98 per cent last year, he said.

The company will pay dividends of Bt1.05 per unit for K-EQUITY, Bt0.44 for RKF-HI and Bt0.13 for KSDLTF on January 14.

KAsset is upbeat on the prospects for the stock market, as confidence has been boosted by the US Congress' avoidance of the so-called "fiscal cliff". The outlook for the Thai and other Asian stock markets remains positive thanks to the launch of economic stimulus measures by central banks. The Japanese government's bond buyback will increase liquidity and attract fund flows into the Asian market.

Asian economies are strong, and KAsset believes foreign investors remain interested in the Thai stock market, as reflected in net foreign buying last month of Bt23 billion. Monthly foreign buying in 2012 averaged Bt6 billion, up from Bt2.1 billion 10 years ago.

"The Thai stock market this year is expected to be positive thanks to expanded domestic consumption and changes to the personal income tax structure, which will boost purchasing power. The hike in the daily minimum wage nationwide is another positive factor for consumption. Investment in infrastructure and enhanced domestic consumption will help gross domestic product to grow by 4-5 per cent," Prasert said.

The reduction in the corporate tax rate to 20 per cent will boost most companies' profit, which will benefit the stock prices of listed companies and support the bourse's growth, he said.

KAsset would continue to invest in stocks in industries that stand to benefit from both state and private investment, and those that will gain from higher domestic consumption, Prasert said.