Thai govt fund shuns local stocks as India a better buy

Thailand's political turmoil is spurring the nation's biggest state pension fund to look for better returns abroad. The Government Pension Fund (GPF) has underweight holdings in local shares and doesn't plan to boost positions until political stability returns and the economy shows signs of recovery, said Sombat Narawutthichai, who helps oversee about 670 billion baht ($20.6 billion) as the fund's secretary general. GPF will instead buy shares in India, Indonesia and the Philippines, which have stable politics and stronger economies, he said. Foreign investors have pulled $720 million from Thai stocks in the past five days. "We are more bullish in some Asian emerging markets such as India, Indonesia and the Philippines where political stability and economic growth potential should offer better returns," Sombat said in an interview in Bangkok.