New funds to replace LTFs at end of 2019

Economy October 11, 2018 01:00

New type of funds will be set up to replace the long term equity fund (LTF) which will end next year, in a move to boost long-term investment in the Thai bourse, said Federation of Thai Capital Market Organisations (Fetco).



Paiboon Nalinthrangkurn, Fetco chairman, said the federation has discussed with seven members and agreed not to ask the Ministry of Finance to extend the LTF programme which will expire at the end of 2019.

Instead, Fetco will propose to set up new type of funds to replace LTFs which are very popular among income earners with tax saving strategy, in order to promote long-term investment and lessen market volatility in the future. 

The discussion is intended to reach finalisation within the term of this government. If not, there must be an exit strategy for LTF investment to gradually flow out of the Thai stock market, Paiboon said.

Presently, the pattern of the fund has been discussed for more benefits to the middle and low-income earners, rather than high-income earners, so that the former group will be able to make long-term investment in the Thai stock market for good returns and sufficient fund for retirement, he said. 

Bt50 bn in LTFs, RMFs to enter SET in Q4

About Bt50 billion worth of long term equity funds (LTFs) and retirement mutual funds (RMFs) are expected to pour into Thai stock market in the last quarter of this year as Thai stocks have made smaller corrections than those in other countries due to strong fundamentals, said Tisco Securities yesterday.

Viwat Techapoonphol, deputy managing director and head of technical analysis of Tisco Securities, said that currently almost all stock markets across the world have dropped as US’ 10-year bond yield has climbed to 3.23 per cent, a seven-year high in light of good US economic indicators.

"Tisco Securities expect the SET Index (the Stock Exchange of Thailand Index) not to drop below 1,670 points due to Bt35-billion LTF and Bt15-billion RMF support expected in the fourth quarter of this year," he said.

Now, foreign holding of Thai shares stays at a record low since 2007. In five years and nine months (until August 2018), foreign investors were net sellers of Thai stocks worth about Bt550 billion.

FORD THAILAND

New Everest, Ranger provide extra push 

Ford Thailand's sales momentum was given a boost in the third quarter with the consecutive launches of the new Everest and new Ranger, as well as the first-ever Ranger Raptor, which all arrived in Ford dealerships in mid-July.

The company has announced that its third quarter sales jumped 21 per cent year-over-year to 16,930 vehicles. 

Sales of the segment-defining Ranger jumped 28 per cent for the July-September period to 13,960 vehicles. This added 0.8 of a percentage point to Ranger's third quarter share versus a year ago to 13.0 per cent, including a monthly high of 13.6 per cent in September. Year-to-date Ranger sales have increased 33 per cent to 41,451 vehicles.

The new Ranger lineup in Thailand consists of 20 different models, including the Raptor, Wildtrak, XLT, XLS and XL variants, and the new 'Limited', or LTD, variant.

The Everest mid-size SUV contributed to Ford's third quarter total with sales increasing 35 per cent from a year ago to 2,909 vehicles, helping drive its segment share up 0.7 percentage point from a year ago to 18.1 per cent.