Foreign investors sell 100 billion baht in Thai stocks and shares amid global rate rise

[snoop1130]

 

In the first five months of this year, foreign investors offloaded almost 100 billion baht worth of Thai shares, with 33.4 billion baht sold in May alone, due to increasing global interest rates and uncertainties surrounding the formation of a new government. Despite this, the Stock Exchange of Thailand (SET) expressed optimism yesterday, believing that the recent easing of the US debt ceiling could improve global sentiment and lead to increased investment in Thai stocks, supported by a rebounding Thai economy.

 

Soraphol Tulayasathien, Senior Executive Vice-President at SET, stated that the outflows from Thailand’s bond and equity markets after the May 14 General Election are likely to be temporary, as investors are concerned about the establishment of a new government and potential changes in economic policy. He said…

 

“Investors are closely monitoring the situation, and analysts are optimistic that foreign fund flows will be reversed if the new government policies do not affect the country’s competitiveness and push operating costs higher.”

 

Furthermore, the SET’s forward price-to-earnings ratio (P/E) remains below the historical average, encouraging individual and local institutional investors to maintain a net position for the January-May period. However, Soraphol also highlighted that the reduction of the Organisation of Petroleum Exporting Countries (Opec) output could increase pressure on the economy and investor sentiment.

 

By Alex Morgan

Caption: Photo Courtesy of Bangkok Post

 

Full Story: https://thethaiger.com/news/business/foreign-investors-sell-100bn-baht-in-thai-shares-amid-global-rate-rise

 

-- © Copyright Thaiger 2023-06-07

 

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[billd766]

The foreign investors seem a lot smarter than the current caretaker government.

 

IMO, that is not too difficult though.

[stoner]

i'm sure none of this has to do with the rock hard stability of thai society and its direction. 

[Isaan sailor]

Strange—investors pull out of Thai stocks—and the Baht edges up a bit….

[BritManToo]

Nothing to do with the Stark Bond default likely to be 7 Billion Baht then?

[Pink Mist]

A trolling Meme post has been removed

[RanongCat]

35 minutes ago, BritManToo said:

Nothing to do with the Stark Bond default likely to be 7 Billion Baht then?

Stark?? DEfault  where?

[bignok]

"the first five months of this year, foreign investors offloaded almost 100 billion baht worth of Thai shares, with 33.4 billion baht sold in May alone"

 

Compared to how much last year? Completely meaningless story without a comparison. Shares are sold 5 days a week!

 

 

[bignok]

SET50 is up over the last 3 months. The market got sold down before that. Bad reporting.

[Scott]

Post with trolling memes reported and removed.

 

[dinsdale]

They are jumping ship because they know the coup history of Thailand and realize if it happens again it will be a lot worse this time round.. I hope common sense prevails but TIT. It's future is in the balance. Coup and the upholding of the three pillars by the military and the end of tourism and foreign investment or accepting the will of the overwhelming majority of Thai voters and progress.

 

Edited June 7, 2023 by Pink Mist
Portion quoting moderation removed from post

[tomazbodner]

2 hours ago, RanongCat said:

Stark?? DEfault  where?

https://thethaiger.com/news/business/thai-stock-market-suffers-as-stark-corporation-defaults

 

[RichardColeman]

10 hours ago, snoop1130 said:

believing that the recent easing of the US debt ceiling could improve global sentiment and lead to increased investment in Thai stocks, supported by a rebounding Thai economy.

It's called kicking the can further down the road. If USA does not stop spending money, the interest payments in 5-10 years will prevent so many programs as to make the USA financially unmanageable no matter which party is in power. And if Brics takes hold, it could get far worse  

[jacko45k]

11 hours ago, Isaan sailor said:

Strange—investors pull out of Thai stocks—and the Baht edges up a bit….

Relative to what and over what timeframe?

In the last month it appears to have lost 1 baht v USD. 

 

[mikebell]

9 hours ago, dinsdale said:

It's future is in the balance. Coup and the upholding of the three pillars by the military and the end of tourism and foreign investment or accepting the will of the overwhelming majority of Thai voters and progress.

Hmnn - that's a hard choice; let me think about it.

[Isaan sailor]

On 6/8/2023 at 6:37 AM, jacko45k said:

Relative to what and over what timeframe?

In the last month it appears to have lost 1 baht v USD. 

 

Glad you asked.  In the last 24 hours USD/Baht has dropped from 34.82 to 34.60.

Schadenfreude much?

[h90]

On 6/7/2023 at 7:14 PM, billd766 said:

The foreign investors seem a lot smarter than the current caretaker government.

 

IMO, that is not too difficult though.

and the current caretaker is a lot smarter than the incoming government

[h90]

On 6/8/2023 at 5:31 AM, RichardColeman said:

It's called kicking the can further down the road. If USA does not stop spending money, the interest payments in 5-10 years will prevent so many programs as to make the USA financially unmanageable no matter which party is in power. And if Brics takes hold, it could get far worse  

Thailand has already a contract with China to transfer Yuan instead of USD. If the banks offer a little bit less fees for the transfer (which will be automatically because on USD transfer the USA skims off a little bit fees) than a bit less $ will be in circulation and go back to USA and increase inflation there.

[h90]

On 6/7/2023 at 10:05 PM, dinsdale said:

They are jumping ship because they know the coup history of Thailand and realize if it happens again it will be a lot worse this time round.. I hope common sense prevails but TIT. It's future is in the balance. Coup and the upholding of the three pillars by the military and the end of tourism and foreign investment or accepting the will of the overwhelming majority of Thai voters and progress.

 

No MF has a conflict with the biggest trading partner China, is aggressive against Myanmar and Cambodia (local trade). Most tourist come from China and Russia which MF is aggressive against. They speak about higher taxes, about less carbon, about higher minimum salaries.
All the things can be discussed as good or bad for society but for business it is toxic.

[In Full Agreement]

On 6/7/2023 at 10:55 PM, tomazbodner said:

https://thethaiger.com/news/business/thai-stock-market-suffers-as-stark-corporation-defaults

 

 

 

I hope the top executives manage to wrangle big bonuses from this development.      They need a good reward for a  job well done.

 

 

[Mr Meeseeks]

28 minutes ago, h90 said:

and the current caretaker is a lot smarter than the incoming government

Based on what evidence? 
 

The current guy is a complete buffoon. 

[Mr Meeseeks]

29 minutes ago, h90 said:

No MF has a conflict with the biggest trading partner China, is aggressive against Myanmar and Cambodia (local trade). Most tourist come from China and Russia which MF is aggressive against. They speak about higher taxes, about less carbon, about higher minimum salaries.
All the things can be discussed as good or bad for society but for business it is toxic.

It is only toxic for businesses that cannot move with the times. 
 

Sure, many Thai businesses will get a shock, but progress and development are necessary. 

[billd766]

52 minutes ago, h90 said:

and the current caretaker is a lot smarter than the incoming government

Really?

 

And how many of them have actually gone to a real university, and ever had a real job for a living?

 

???? ????

[jacko45k]

13 hours ago, Isaan sailor said:

Glad you asked.  In the last 24 hours USD/Baht has dropped from 34.82 to 34.60.

Schadenfreude much?

Always drops a touch for the weekend.... I don't think looking at a single days movement tells me very much apart from you are being pedantic. You claimed the baht was going up (as stocks fell) a few days ago when it appears to be weakening as you would expect....did you even look?