Photograph courtesy of Bangkok Put up

Foreign funds made a return to the Stock Exchange of Thailand (SET) in February, regardless of a 3.2% shrinkage of the SET index within the first two months of 2024. The traders’ return was pushed by a lower in expectations of the Federal Reserve’s coverage fee lower, which was predicted to occur solely thrice this 12 months.

Soraphol Tulayasathien, the SET’s senior govt vp, affirmed that international funds migrated again to the Thai stock market in February, mirroring tendencies in different regional markets. However, the SET index’s prospects had been hampered by the Nationwide Financial and Social Improvement Council’s progress forecast downgrade to 2.2-3.2% for 2024.

In February, the SET index noticed a 0.5% improve from the earlier month, closing at 1,370.67 factors. It aligned with the motion of its regional counterparts, regardless of experiencing a 3.2% fall from the conclusion of 2023.

Soraphol famous the optimistic influence of export progress, propelled by the revival in world commerce and powerful consumption progress, supported by the regular restoration of the tourism sector. These components prompted analysts to start the elevation of revenue forecasts for companies concerned in these industries, main to a resurgence within the costs of those teams’ securities.

Nevertheless, amidst native and world uncertainties, analysts proceed to advise traders to direct their funds to excessive dividend shares for passive earnings. These shares have constantly outperformed the SET index and they’re seen as defensive shares with a decrease beta than the market common.

In February, the SET and Marketplace for Different Funding noticed a mixed common each day buying and selling worth shrinkage of 29.5% from the earlier 12 months, to 47.2 billion baht (roughly US$1.32 billion). The common each day quantity for the primary two months was 47.1 billion baht.

Foreign traders emerged as web patrons with 3.25 billion baht (US$91.8 million) in February, regardless of a web sale of 27.6 billion baht (US$779 million) from January by means of February. Their buying and selling ratio surpassed all different investor sorts for the twenty second consecutive month.

As of February’s finish, the Thai stock exchange’s ahead price-earnings (P/E) ratio was 14.3 instances, exceeding the Asian stock markets’ common of 12.9 instances. The dividend yield ratio stood at 3.31%, surpassing the Asian stock markets’ common of three.19%.

Efficiency of Thailand Futures Exchange (TFEX)

The Thailand Futures Exchange (TFEX) recorded a each day buying and selling quantity common of 393,850 contracts in February, representing a 2.6% lower month-on-month. The primary two months noticed a 25.6% year-on-year fall to 399,395 contracts.

Within the earlier 12 months, SET-listed corporations reported complete gross sales of 17.2 trillion baht (about $496 billion), a 2.6% decline from the prior 12 months, with web revenue dwindling 10.7% to 961 billion baht (US$27 billion). Manpong Senanarong, the SET’s senior govt vice-president, attributed the lowered gross sales and web earnings to the droop in costs of varied commodities, together with oil, agricultural merchandise, and meals, coupled with the rise in SG&A bills and high-level rates of interest.

However, tourism-related sectors reminiscent of aviation, motels, house rental, retail, and telecommunications skilled progress, largely due to authorities insurance policies, reported Bangkok Put up.

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