Bangkok:The Stock Exchange of Thailand (SET) manager has indicated that recent "capital outflow" is considered only a short-term issue, despite the floods affecting Thai listed companies.
According to Thai News Agency, Mr. Assadej Kongsiri, Director and President of the SET, emphasized that the current capital outflow is primarily due to investors seeking to reduce risk and does not signify a long-term shift in their perception of Thailand. He noted that the flooding situation has not yet resulted in any direct reports, implying its impact may be more indirect.
Mr. Kongsiri highlighted that a recent roadshow in New York City was pivotal in garnering the interest of foreign investors, particularly long-term funds, in Thailand. These investors are not only focused on the current stock market conditions but are also considering the broader economic and policy landscape of the country. The Thai capital market has been pressured by external factors such as rising US bond yields, increasing energy prices, and domestic flooding, which have raised concerns about non-performing loans. However, the outflow of funds is currently seen as a short-term risk mitigation measure rather than a fundamental change in perception.
Initial reports suggest that the flooding in Bangkok and surrounding areas has significantly impacted listed companies, although the effects have been relatively minor. Unlisted businesses have been more severely affected, with potential disruptions in flooded supply and value chains that could impact production, delivery, costs, and overall market performance.
Analysts maintain that the impact of the floods on the performance of listed companies remains limited. They assert that Thailand's export sector continues to grow and that the overall fundamentals of the Thai economy have not been significantly altered by the flooding situation.