Investors urged to diversify overseas amid Thai volatility

Local bourse to remain unsettled

- NUNTAWUN POLKUAMDEE

Despite a significant rebound this week, the Thai stock market should remain volatile given the trade war, according to BBL Asset Management (BBLAM), which recommends investors diversify their investments to overseas markets with a focus on Europe and China.

Europe and China are more attractive than the US market, where stock valuations are high. For Thai equities, the focus should be on defensive stocks such as those in the health-care sector and high-dividend stocks, said BBLAM.

Isara Ordeedolchest, deputy managing director and head of investment research at BBLAM, said the trade war remains highly uncertain and could affect Thai economic growth.

Some research houses cut their Thai GDP growth projections to less than 2%, while exports are expected to decline due to US President Donald Trump's tariffs.