Tech stocks continue to shine

The global equity investment trend remains focused on technology as the segment has retained its top-notch business performance this year, with equity investment in Chinese tech giants generating exuberant returns, says Asia Plus Group Holding Plc (ASP).

The return of global technology stocks, such as the listing of Chinese behemoths Alibaba and Tencent on New York Stock Exchange, has generated year-to-date return of more than 100%, while US giant Apple generating a return of more than 10%, said ASP chief executive Kongkiat Opaswongkarn.

Mr Kongkiat said the revenue from equity investment has increased significantly this year, especially from global tech stocks as investors have continued to pour money into the sector.

The investment trend in technology companies is resilient because investors have a positive outlook on the development of artificial intelligence, financial technology and new products created by tech-savvy firms, he said.

“For Southeast Asia, our view is that Vietnam is the most interesting, with expectations of the country’s economic growth poised to be the highest growth rate in the region over the next decade, due to continuing economic policies, education development and a large population of nearly 100 million,” Mr Kongkiat said.

“As for Thailand, we will have the general election next year, but we have to be watchful of whether the new government’s economic policies change or not. If there is a constant change in those policies, this will affect economic development and investors’ confidence, making the country’s development process the least developed among regional peers.”

ASP’s securities business, meanwhile, remains in a highly competitive zone. Trading commission fees in the securities investment industry have slipped from 0.1177% last year to 0.1154% at present, Mr Kongkiat said.

For its part, ASP is keeping commission fees at 0.1583%, staying above the industry average.

“Investors are remaining with the company, as they are content to pay for quality research and full investment services that the company has been providing to investors, including bonds, structure notes, mutual funds, investment in global stocks and others,” he said.

High competition seen in the securities investment industry caused the company’s revenue from trading commission fees in the first nine months to decrease to 752 million baht from 962 million in the same period last year, Mr Kongkiat said.

“However, ASP has a well-diversified business structure with other revenue sources coming from investment banking, financial advisory and asset management,” he said.

Total revenue in the first nine months was 1.85 billion baht, up from 1.81 billion in last year’s corresponding period.

Net profit came to 545 million baht, up from 537 million in the same period of 2016.