Bangkok:The Stock Exchange of Thailand (SET) reported a 2.6% correction in Thai stocks for October, with foreign investors identified as net sellers during the month. However, the overall market performance for the first ten months of the year remains strong, yielding a 20.6% return.
According to Thai News Agency, foreign investors have made net purchases totaling 18 billion baht since the beginning of the year. The market's focus is currently on the upcoming GDP announcement by the National Economic and Social Development Council (NESDC), which is anticipated to be a key factor influencing year-end trends. The SET expects that robust corporate earnings, tax-deductible fund inflows, and heightened domestic investment confidence will support the market for the remainder of the year.
Mr. Chatchai Thissadoldilok, CFA, FRM, Assistant Manager and Head of Research at the SET, noted that despite the 2.6% decline in October, the market index closed at 1,518.59 points, marking a 20.6% increase from the previous year-end. Notably, the resources and financial sectors have delivered strong returns, outperforming the broader market.
The average daily trading value for the SET and mai markets in October was 66,390 million baht, a significant increase from the previous year. Despite foreign investors being net sellers in October, they have maintained cumulative net purchases since the year's start. October also saw the listing of two new companies, Thai Packaging Industry Public Company Limited and Quick Transformation Public Company Limited, on the SET and mai market, respectively.
In the Thailand Futures Exchange (TFEX), the average daily trading volume decreased in October, but the overall trading volume has increased significantly year-to-date. Mr. Chatchai highlighted international factors such as technology stock valuation concerns and oil price volatility as pressures on the market, yet noted that the Thai stock market's decline was less severe compared to other regional markets.
Domestically, positive signals include the Bank of Thailand's steady policy interest rate and an upward revision of GDP forecasts. With expanding exports and investments, particularly in technology and AI, and the tourism sector entering its high season, the outlook remains optimistic. The NESDC's impending GDP announcement and the Manufacturing Production Index (MPI) are anticipated to influence market movements as the year concludes.
Dr. Benjarong Suwannakiri, Deputy Manager and Head of Corporate Strategy and Finance at the SET, emphasized that despite a slowdown in foreign investment in October, the Thai stock market has demonstrated superior returns compared to regional markets, bolstered by investor confidence in economic stability. The stock price corrections following the US midterm elections are viewed as opportunities for more attractive valuations.
As the year draws to a close, domestic savings through tax-deductible funds, particularly Thai ESG funds, are expected to provide market support. The SET is also preparing infrastructure to support a flexible savings system. A recovery in IPOs is projected to commence in 2027, further bolstering market prospects.