THD - THD: Thai Equities Are Still Too Pricey
2024-04-02 11:46:01 ET
Summary
- Thailand has not been a happy hunting ground for investors in recent years.
- The macro/micro setup offers little hope of an equity turnaround anytime soon.
- Pending a step change in the fundamental outlook, I won't be buying this dip.
Data out of Thailand hasn't been all that encouraging since I last covered the largest and most liquid US-listed Thailand investment vehicle, the iShares MSCI Thailand ETF ( THD ) (see THD: Beware Of Thailand's 'Helicopter Money' Plans ). To recap, Q4 2023 GDP not only fell short of expectations but actually saw a (seasonally adjusted) contraction relative to the previous quarter. This means that Thailand has still not fully regained pre-COVID highs , making it the major laggard within the ASEAN-5 (the other members being Indonesia, Malaysia, the Philippines, and Singapore). Note that Thailand's macro troubles also come despite help from a Chinese tourism recovery (albeit a rather gradual one so far), as exports to China (down YoY) and government spending headwinds more than offset positives elsewhere....
THD: Thai Equities Are Still Too Pricey