Bangkok--15 Jul--Aziam Burson Marsteller
All key Thai investor sentiment indicators are up in the latest quarter
Key Highlights of the Quarterly ING Investor Dashboard Survey
Thailand index jumps 74% to 113 for Q2 2009 from 65 for Q1 2009 amidst the 34% increase in the SET index in Q2 2009 and reduced concerns about further contractions in the global economy
Pan-Asia Index increases 55% to 132 for Q2 2009 from 85 for Q1 2009 with the growth markets of China and India again spearheading investor sentiment
Thai investors are optimistic about the local economy despite still being in recession with GDP expected to contract by 4.4% in 2009
Thai investors believe residential property prices will further rise by 4.0% in Q3 2009
More Thai investors are moving out of conservative investment strategies to a more balanced strategy (60% for Q2 2009 vs 40% for Q1 2009)
China investor sentiment continues its upward momentum
ING, the global financial services group, today released data from its quarterly ING Investor Dashboard Survey, which shows a remarkable 74% quarter-on-quarter rebound in Thai investor sentiment to 113 for Q2 2009 from 65 for Q1 2009, and a 92% increase for the first half of 2009. This reverses the downward trend of the previous four consecutive quarters since Q2 2008, moving the Thailand Index from the “pessimistic” to “optimistic” category.
The overall pan-Asia (ex-Japan) ING Investor Dashboard Sentiment Index also jumps to 132 for Q2 2009 from 85 for Q1 2009, representing a significant increase of 55%, despite the ongoing global financial and economic crisis and swine flu (H1N1) epidemic, largely due to the recent performance of the financial markets and confidence by Asian investors that the markets will continue to rally in the coming quarter.
The ING Investor Dashboard is the first quarterly survey in the Asia Pacific region that provides a pan-Asia (ex-Japan) investor sentiment index. The survey is conducted quarterly across 13 markets* in Asia Pacific, and not only provides market insights on investor attitude and outlook but also allows each market to be benchmarked and tracked against the overall investor sentiment across Asia using the pan-Asia index.
Thai investors’ outlook brightens
For the first time in 12 months, Thai investors have moved out of the “pessimistic” zone, with strong improvements in their outlook on the local economy and personal financial situation, despite the local economy still being in a recession.
Commenting on the results, Mr. Maris Tarab, Chief Executive Officer, ING Funds (Thailand) Limited said, “Clearly we are encouraged by the uptick in Thai investor sentiment although we have to caution that there are considerable headwinds going forward at least throughout 2009. GDP is expected to fall by 4.4% this year after falling 7.1 % year-on-year in Q1 2009. This is largely reflected by steep declines in household consumption, exports, farm incomes, tourism numbers and rising unemployment. However we do foresee a return to positive growth in 2010 as the global economy improves and the positive effects of the government’s expansionary fiscal policy, various stimulus plans and accommodative monetary policies take hold.”
The survey shows that significantly more Thai investors are bullish about the prospects of the local property and stock markets
As a result of the rebound in confidence, the survey shows that Thai investors’ risk appetite has expanded.
According to Mr. Tarab, “Valuations are back to a fair level after the rally in recent months, so investors thinking about investing in the local stock market should take their cue from the results that companies will report in August. Many companies are likely to report an earnings decline. We are also witnessing a positive return of foreign portfolio investment which should have some staying power provided there are no further external shocks or political demonstrations and instability.”
China investor sentiment maintains upswing momentum
“As China is widely seen as a key element of the Asian economy, Thai investors have been looking for indications as to China’s economic prospects in the near and mid-terms. Our survey indicates that China’s investor sentiment continues to be buoyed by signs of improvement in the domestic economy as a result of the government’s effectiveness in implementing measures to help the local economy withstand the global economic downturn. In a region where most markets are experiencing a recession, only China and India are on track for strong economic growth,” continued Mr. Tarab.
90% of investors also indicated that they are seeing the positive effects on the economy as a result of the government’s 4 trillion-yuan stimulus package.
According to Mr. Michael Chiu, Senior Investment Manager, ING Investment Management Asia/Pacific, “While other governments have also implemented stimulus packages to help the local economy mitigate the negative impact of the global recession, China’s government has proved to be the most effective in making such measures work. And this has been reflected in improving economic indicators such as the Purchasing Managers’ Index, which in June showed a fourth month of consolidation above the watershed mark of 50, and solid domestic consumption figures. It’s not surprising therefore to see such a high level of confidence among investors in China.”
“We will likely see Q2 2009 GDP expand from Q1 2009’s 6.1%, and a lot more growth will be apparent in the latter part of the year as the stimulus measures continue to take effect. We expect China to meet its target of 8% GDP growth this year.”
For an introduction of ING Investor Dashboard Sentiment Index and latest detailed (high-resolution) data charts, please visit http://www.ing.asia/investor_dashboard
Notes to Editors
About the ING Investor Dashboard
The ING Investor Dashboard survey measures and tracks investor sentiment and behaviour of mass affluent investors each quarter from 13 Asia Pacific markets (including China, Hong Kong, India, Indonesia, Korea, Malaysia, the Philippines, Singapore, Taiwan, Thailand, Japan, Australia and New Zealand), and is the first quarterly survey in Asia Pacific which provides a specific industry benchmark for pan-Asia (ex-Japan) investor sentiment.
The Q2 2009 survey was conducted in June 2009 and involved online interviews with a total of 1,314 mass affluent investors across the 13 Asia Pacific markets. The respondents are aged 30 years and above, and have disposable assets or investments of US$100,000 and above, with the exception of Indonesia (disposable assets or investments of US$56,000 and above) and the Philippines (disposable assets or investments of US$100,000 or monthly income of Php250,000 and above).
The survey is conducted by international and independent research firm Research International and is tracked extensively by major financial and business media organisations across all 13 markets in Asia.
Profile of ING
ING is a global financial institution of Dutch origin offering banking, investments, life insurance and retirement services to over 85 million private, corporate and institutional clients in more than 40 countries. With a diverse workforce of about 115,000 people, ING is dedicated to setting the standards in helping our clients manage their financial future.
Profile of Research International
Founded in 1962, Research International is owned by WPP, the leading global communications services company. Also part of the Kantar group, the parent company for WPP’s worldwide information and consultancy interests, Research International boasts an extensive network with offices in more than 50 countries. Research International has specialist knowledge in sectors from automotive and financial services to new media, retail, technology and packaged goods. Established in Asia in 1991, its offices in Asia Pacific include Singapore, Malaysia, Thailand, Indonesia, the Philippines, China, Taiwan, Hong Kong, South Korea, Japan, India, Australia and New Zealand. For further information, please go to: www.research-int.com.
Press enquiries
Jumpon Saimala James Best
ING Asia Pacific Aziam Burson Marsteller
02-688-7780 02-252-9871