Mark Mobius @ Franklin Templeton is out with his 4Q review, and here’s his thoughts on Thailand and the link to the article for his thoughts on the rest of the Emerging Markets
Thailand could see some weakness in economic activity due to the one-year period of mourning following the passing of its king in 2016, but we believe this should only be a temporary effect. Thailand’s stock market saw positive performance in December, supported by the energy and financials sectors. The government’s significant economic stimulus measures, reform programs and infrastructure spending appear to be having a beneficial effect on the economy. In addition, lower commodity prices have helped to moderate inflation, boosted consumer purchasing power and enabled the implementation of reforms and accommodative monetary policies, all of which have supported economic growth. General elections are scheduled for late 2017/early 2018, which could see the return of a democratically elected government. We particularly like the consumer services, health care and tourism sectors, as Thailand remains competitive in these areas. Even though Thai banks continue to face near-term challenges from rising non-performing loans and increasing pressure on fee incomes, we continue to selectively favor better-positioned, undervalued Thai banks.
Source: Franklin Templeton