SET Index July 67 increased by 1.5%, foreign investors still net sell but starting to decrease

Bangkok, SET Index in July 67 increased by 1.5%, indicating that the measures to enhance control of Short Sell have decreased, domestic investors have returned to invest more, while foreign investors are still net sellers, but the volume has started to decrease. It is believed that the Thai economy still has more Upside than Downside. Keep an eye on the case that will decide the fate of the Prime Minister on August 14. Mr. Phakorn Peetathawatchai, Director and Manager of the Stock Exchange of Thailand (SET), admitted that the stock market is currently very volatile. He does not want investors to worry about risk-on or risk-off, but rather wants them to look at the data. He believes that in the long term, the Thai economy has more upside than downside from tourism factors that are starting to recover and the government spending budget that has been released. Therefore, he would like to ask everyone to follow and analyze the data carefully. As for the case of the Prime Minister's important case next week, wh ich the Constitutional Court will rule on on August 14, will it affect the overall investment? I think that the government is currently using very little investment budget. Most of the budget is still about paying salaries, 60-70%. Even if there are various events, it will not cause investment budget to be used less than this. I believe that the downside is still less than the upside. While organizing the Thailand Focus event on August 28, the situation will be monitored and information will be provided to restore investor confidence. Mr. Soraphol Tulayasathian, Deputy Managing Director, Head of Corporate Strategy, SET, revealed that the FED meeting result voted to maintain the policy interest rate for the 8th consecutive time at 5.25% - 5.50% as the market expected. Jerome Powell's statement tends to reduce the interest rate in the meeting this September. After that, stock markets around the world, led by the US and Japan, were sold off by investors after concerns that the economy may be entering a recessio n. Due to the uncertainty from various factors during this period, investors may find stocks in the market with appropriate valuations and are affected by volatility with limited impact. We are starting to see signs of capital flowing into the stock market in the region. Although foreign investors are still net sellers in the Thai stock market, the volume has started to decrease. The baht has appreciated throughout the month amid the main support from the appreciation of Asian currencies in general, led by the yen, the increase in the price of gold in the world market, which is further supported by geopolitical risks, and the net purchase status of Thai bonds by foreign investors. In addition, the Thai economy has recovered from exports and tourism, increased government spending, and the Stock Exchange of Thailand has issued measures to control short selling, resulting in a decrease in short selling. Domestic investors have returned to invest more. Contrary to the proportion of foreign investment, the govern ment has also approved new tax measures for Thai ESG funds, increasing tax deductions and reducing holding periods. At the end of July 2024, the SET Index closed at 1,320.86 points, up 1.5% from the previous month but down 6.7% compared to the end of 2023. Investors are still waiting for clarity on the government's economic stimulus measures and assessing the impact of the capital market confidence-building measures that were just announced in July 2024. In July 2024, the industry groups that performed better than the SET Index compared to the end of 2023 were the Technology group, the Agriculture and Food Industry group, the Consumer Goods group, and the Service group. The average daily trading value in the first 7 months of 2024 was 44,162 million baht, down 22.3% from the same period last year, with foreign investors selling a net total of 117,559 million baht. In addition, foreign investors had the highest proportion of trading value for the 27th consecutive month. In July 2024, there were 2 new listed companies trading on the SET: Food Moment Public Company Limited (FM) and Chao Sua Foods Industry Public Company Limited (CHAO), and 1 new company on the mai: Nice Call Public Company Limited (NCP). Forward P/E of the Thai stock market at the end of July 2024 was 14.3 times, higher than the average of the Asian stock market at 12.5 times, and Historical P/E was 16.0 times, higher than the average of the Asian stock market at 15.1 times. The dividend yield at the end of July 2024 was 3.53%, higher than the average of the Asian stock markets of 3.17%. In July 2024, the Futures Exchange Market (TFEX) had an average daily trading volume of 379,777 contracts, down 30.3% from the previous month, mainly due to the decrease in SET50 Index Futures and Single Stock Futures. In the first 7 months of 2024, the average daily trading volume was 436,537 contracts, down 20.1% from the same period last year, mainly due to the decrease in Single Stock Futures and SET50 Index Futures. Source: Thai News Agency