BBL fund arm selling off shares
- Published: 5 Nov 2013 at 17.30
- Online news:
The country's top-performing equity fund manager has reduced holdings of domestic shares on expectations that protests against the amnesty bill will spur prolonged conflict and curb economic growth.
BBL Asset Management manages about 300 billion baht worth of assets and runs seven of the 10 best-performing Thai equity funds during the past three years. It has been increasing its cash holdings since mid-October, CEO Voravan Tarapoom told Bloomberg.
"The political conflict will intensify further, worsening the economic outlook," Ms Voravan said on Monday.
The Bangkok Bank affiliate's BBL Bualuang Top-Ten Fund returned an annualised 28% during the past three years, the best performance among more than 200 local peers tracked by Bloomberg.
"It's still not a good time for returning to domestic equities, even after prices declined significantly to attractive levels," said Ms Voravan.
Local stocks rallied by 2% on Tuesday after a 2.85% plunge the day before as anti-amnesty marchers fanned out through the capital.
The Stock Exchange of Thailand Index closed on Tuesday at 1,415.44, up 27.04 points from Monday. Turnover was 34.97 billion baht, with 7.2 billion shares traded.
"Opposition against the amnesty bill has broadened to several parts of society, while the government continues to push ahead with the amnesty bill," said Ms Voravan. "The political concern will affect the entire stock market and every sector."