Investments in Thailand’s stock market remain strong and volatility remains subdued despite recent volatilities in the global economy. In spite of accelerated inflation in many economies and exchange rate volatility, almost 150 billion baht of foreign investment has flowed into the Thai stock market. Good export sector performance and a gradually recovering tourism scene are cited as having made this possible.
SET Senior Executive Vice President Soraphol Tulyasathien explained that the dollar’s appreciation has brought about a continual depreciation of ASEAN region currencies. The Thai baht is no exception. Nonetheless, this has not impacted investments in Thai stocks. Foreign investors had a net purchase of 146 billion baht in the first 9 months of this year. For the 6th month running, foreign investors were the group that contributed the highest trade value. Mr. Soraphol added the stock market benefited from support momentum from industries that were helped by the country’s reopening drive.
As of end-November, The SET index stood at 1589.51 and had declined by 3% from the prior month. The decline was in line with other stock exchanges in the ASEAN region.
Mr. Soraphol said there is a tendency for stock markets around the world, including Thailand’s, to be volatile during the remainder of the year. This is due to large economies having tweaked their economic and fiscal policies to accommodate risks posed by developments in the world economy. Especially noteworthy are policies to raise interest rates for the purpose of keeping a lid on inflation.
Mr. Soraphol said Thailand’s economy will remain in gradual recovery, supported by an export sector that is growing well and the tourism sector. For the latter, the foreign tourist arrivals figure looks set to exceed 10 million this year. Nonetheless, Mr. Soraphol said investors should closely follow news and plan any short-term investments carefully. This is due to the potential for new risk factors coming into play and impacting the money and capital markets during the remainder of this year. (NNT)