Mobius says Thai conflict will refresh, not harm, economy

Dr Mark Mobius remains bullish on Thailand for the longer term despite the current political instabi...

Dr Mark Mobius remains bullish on Thailand for the longer term despite the current political instability in the country.

Manager of the Templeton Emerging Markets Investment Trust believes the disturbance rather refreshes the political climate and pushes for reform.

He said: “Thailand is not new to political turmoil. Since absolute monarchy was abolished in the 1930s, the average term of each government is about two years.

“We have been investing in Thailand for over 20 years and have seen Thailand go through a number of military coups. Through these years, the country, its people and businesses have learned to work through political uncertainties.

Mobius believes the stock market will continue to be driven by the fundamentals of its listed companies.

He said the fund’s focus on value and company fundamentals puts it in good stead to manage through the troubles, finding Thai stocks to be attractively priced and said he remains confident in the potential of the Thai market.

He said: “Take 2007 as an example. Although the country was under the control of an unelected military government, the MSCI Thailand Index returned 46.6% in USD terms, outperforming MSCI Emerging Markets Index's 39.8%.”