Stock Exchange, SET Index for January decreased 3.6% , while 4 business days in February saw fund flows flowing back in. Mr. Sornphon Tulyasathien, Deputy Manager, Head of Corporate Strategic Planning Division The Stock Exchange of Thailand revealed that in January 2024 there was a movement of investments out of the Thai stock market. From the forecast that the Thai economy in the 4th quarter of 2023 expanded lower than expected. This has resulted in the reduction of profit forecasts for listed companies in 2023. And if you consider the fund flow of foreign investors over the past 10 years, it is found that there will be capital inflows only in the years in which profit estimates have been raised. Significantly, however, despite the outflow of foreign capital, the ratio of the value of foreign stock holdings relative to market capitalization remains at a level close to the historical average. In addition, if considering From the Price to Book (P/B ratio) ratio of SET Index is still quite low. Meanwhile, SE T's dividend yield has increased to 3.24%. Investors' confidence in the Thai stock market has decreased from the beginning of 2023 due to pressure factors both at home and abroad. Situation of the Thai stock market at the end of January 2024. SET Index closed at 1,364.52 points, down 3.6% from the previous month. with returns similar to the regional average Industry groups that improved better than the SET Index compared to the end of 2023 include the consumer products group. Resource Group, Service Group, Agriculture and Food Group, and Technology Group The average daily trading value in SET and mai was 47,111 million baht, a decrease of 34.6% from the same period last year. Foreign investors returned to net selling after net buying in the previous month. In January 2024, foreign investors sold a net amount of 30,870 million baht, with foreign investors accounting for the highest proportion of trading value for the 21st consecutive month. The Forward P/E of the Thai Stock Exchange at the end of January 20 24 was at 15.5 times, higher than the average of Asian stock exchanges which was 12.9 times, and the Historical P/E was 16.7 times, higher than the average of Asian stock exchanges which was 15.5 times. At a level of 14.7 times, the dividend yield at the end of January 2024 was at 3.24%, lower than the average of Asian stock exchanges which was 3.31%. Futures market conditions In January 2024, the Futures Exchange (TFEX) had an average daily trading volume of 404,435 contracts, a decrease of 17.3% from the previous month, mainly due to a decrease in Single Stock Futures and SET50 Index Futures. First week of February Stocks have been rebounding for some time. This is expected to be a result of the Fed sending a clear signal. People will switch to other issues. Our home has many supporting factors. For example, the International Monetary Fund (IMF) raised its GDP forecast for Thailand in 2024 to expand to 4.4%, which is stronger than the previous forecast of 3.6% due to improved international demand. and the expansion of consumption in the private sector The main factor is tourists. which is a good trend Along with the Visa Free policy in March, it is considered a good sentiment and the value of Thai stocks is now inexpensive. Price to Book is not much. If Earnings come back, it should be of a good size. 'Investors expect that The Fed will cut interest rates 5-6 times, but in January The Fed chairman made it clear that Before March, there will definitely not be an interest rate cut. This caused a sell-off in January. But the latter is more clear. Strong US employment numbers have caused fund flows to begin returning in February. However, we still need to keep an eye on it for a while. Because in the Thai capital market, fund flow has just returned for the 4th day. Therefore, I would like to keep an eye on it for a while longer,' Mr. Sornphon said. Mr. Phakorn Pittawatchai, Director and Manager The Stock Exchange of Thailand said about the capital flowing back in early February that It is caused by various probl ems being resolved more and more. But he was still not complacent. Because there are still many factors that are coming back, such as the issue of Geopolitics. A change in interest rate trends is good news. But Geopolitics is an uncertain matter. Regarding the recovery of the Thai economy which is K-Shape, I think there are still many things to worry about. But things seemed to be resolved one by one. Therefore, he sees that sentiment has improved. Moreover, if interest rates gradually decrease in the world market, he believes that it will cause more money to flow back into the country. In addition, in the business sector that is growing travel Growing domestic consumption will help gradually recover, but our recovery has not yet recovered equally in every factor. There is still fast and slow. However, investors still need to follow information from abroad carefully. Especially things related to commodity prices. The price of oil is determined by geopolitics. However, interest rate risk will be less and liqu idity will be better. As for the progress of the case Stock Exchange Hire a consulting company, Oliver Wyman Company, to come look at the operating system of the Stock Exchange. Today you will hear summary information, which is the final information for the first time. Then the Stock Exchange It will be updated with the stakeholder industry, the Stock Exchange of Thailand and the Securities and Exchange Commission (SEC) before proceeding with the process. Open to listen to further opinions. Mr. Phakorn also revealed the progress of the inspection of the trading program. There have been 5 cases submitted for inspection and no case has been found where the trading program caused naked short selling. The Stock Exchange is still accepting and investigating continuously. If anyone is curious about any case, they can send it for review. However, we cannot verify anything outside of our scope. such as transfer of shares outside the market, etc. As for the first meeting of the new securities board yesterday (6 Feb .), initially there was a policy. and various interests The five newly arrived committee members have provided guidelines which are currently being compiled. It will be updated soon. Source: Thai News Agency