Bangkok 7 Aug - SET sees the light Many positive factors became apparent. Investors are clearly encouraged by politics. attracting investment into the country Fears of slowing Chinese economy
Mr. Soraphol Tulyasathien, Deputy Manager, Head of Corporate Strategic Planning Division The Stock Exchange of Thailand (SET) said that the overall stock market situation in July 2023 improved by 3.5 percent compared to June. Reflecting a better overall picture in many aspects Thai stock index started well If politics is clear Analysts expect the Federal Reserve (FED) to raise interest rates one last time in its latest round of meetings. After headline inflation dropped to 3 percent the previous month. Better employment numbers Of unemployment at 3.6 percent, which is very low compared to 5.0 percent, investors began to ease concerns about the economic recession of the United States.
Asian Development Bank (ADB) reports that the economy in the ASEAN region. has a tendency to decrease to 4.6 percent in 2023 and 4.9 percent in 2024
Considering the SET Index's Forward PE ratio is relatively lower than the historical average. Causing individual and institutional investors in the country to buy nets for 6 consecutive months. ADB announced to increase Thailand's GDP in 2023, recently expanding by 3.5 percent from the previous forecast of 3.3 percent growth in April 2023, being the only country in ASEAN. which has increased GDP for the Thai stock market's P / E value of 17.04 times, which is considered lower than the average
In addition, foreigners gradually began to return to invest in Thailand. Daily investment proportion of foreign investors 51% worth 590,000 accounts per day While the investment before the problem of COVID-19 amounted to 350,000 accounts, it has become more pronounced. what investors are worried about Although the central bank of China has to cut the policy rate. issuing measures to stimulate, revitalize and increase consumption in the automotive sector Real estate and service sectors may have a positive effect on Thai listed companies in the future. But the Chinese economy is not very strong.
The Thai stock market as of the end of July 2023, the SET Index closed at 1,556.06 points, an increase of 3.5 percent from the previous month. and a decrease of 6.7 percent compared to the end of the previous year.
In July 2023, industry groups that improved better than the SET Index compared to the end of 2022 were technology and finance groups, with an average daily trading value of 46,000 million baht, a 25.3% decrease from the same period last year. In the first 7 months of 2023, it was 56,873 million baht. Foreign investors sold net for the 6th month. In July 2023, foreign investors sold net 12,558 million baht.
Mr. Pakorn Peetathawatchai, director and manager of the Stock Exchange of Thailand, said that in the case of the SET Together with the SEC, prepare to improve the conditions Raising funds on the mai stock market and the SET in order to be in line with the current situation, because entrepreneurs now have the option to raise funds through 3 markets if they are small businesses starting businesses such as medium-sized enterprises (SME) or startup enterprises. (Startup) to raise capital through LiVe Exchange (stock exchange Life Exchange) when growing stronger Raise funds through the mai market and when the business grows. To be listed on the SET Stock Exchange Joint development of rules with the SEC Office When there is clarity, will be announced again.
As for the plan to boost trading, it was admitted that foreign investors had the highest trading proportion in the SET because foreign funds traded. invest fast compared to retail investments The number of retail investors in the country remains the same. but starting to have a smaller proportion compared to the overall investment in the market SET Therefore, a new group of investors had to be created. accept new account will be a small investment account Still can't compete with the ratio of institutional investors but want to move forward to create diversity so that more investors enter the stock market
The forecast for the whole year Overall, the risk has decreased. If it's clear Foreign capital will start flowing back to Thailand. admit that the performance of listed companies In the same group, some recovered. Some people still have problems. Revenue is not as expected Each recovered differently. Investors were encouraged to quickly form a government. will set policies to drive the economy and budgeting clearly
Mr. Pakorn said that also persuades investors to participate in the Thailand Focus event held between 21-25 August, organized in the theme of presenting soft power because it is a strong economy of Thailand Invited service providers, government agencies, and the Thai private sector to attend the event. for foreign investors to be informed As for IPO fundraising, it is accepted that there are risks depending on the situation. and listed companies The situation must be assessed and pricing is in line with the operating results and the situation. in the part of the stock market ready to provide information Opportunity to profit for investors to be analyzed. make investment decisions Recognize that global markets are now volatile. Therefore, investors must be careful.-Thai News Agency
Source: Thai News Agency