The Thai stock market is facing a potential slump this month, following a 6.1% drop in October and a 17.2% decline year-to-date, due to potential delays to a significant digital wallet scheme and a slower-than-anticipated recovery in the tourism sector. Such concerns are sparking significant investor anxiety, according to industry analysts.

 

Sompong Benjathepanan, the assistant managing director at AIRA Securities, highlighted that the Stock Exchange of Thailand (SET) index shed 100 points, making it the second-poorest global performer after Israel’s exchange. He also raised concerns about the Thai government’s economic stimulus policies.

 

“They lack clarity in terms of funding sources.”

 

Sompong also pointed out that recent reports hinting at a potential delay to the 10,000-baht digital wallet scheme until September could further weaken investor sentiment.

 

“The Thai economy needs stimulus to shore up growth.”

 

Rakpong Chaisuparakul, senior vice president at KGI Securities (Thailand), echoed Sompong’s sentiments, adding that the Thai stock market’s steeper-than-expected decline in October was due to both international and domestic negatives.

 

By Alex Morgan

Caption: Picture courtesy of Somchai Poomlard

 

Full story: The Thaiger 2023-11-02

 

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Phu Thai have always used populist policies to secure votes at a financial burden the county can ill afford. 

Remember the rice pledging brainwave cost billions was mlred in corruption and forced Thaskin's sister into exile. 

The promised givaway of 560 billion made two weeks before the election  to secure Thaksins return is not fooling investors as they never had the money or any plan to fund it. 

13 hours ago, snoop1130 said:

The Thai stock market is facing a potential slump this month, following a 6.1% drop in October and a 17.2% decline year-to-date, due to potential delays to a significant digital wallet scheme and a slower-than-anticipated recovery in the tourism sector

Gotta blame something I suppose.. Covid has long gone so now the Digital wallet if the fall-guy.

    Here's a tip.....................buy low. sell high!  😏

8 minutes ago, hotchilli said:

Gotta blame something I suppose.. Covid has long gone so now the Digital wallet if the fall-guy.

Yes, blaming covid, like blaming past Presidents, can only work for so long. 

I have a hard time believing the digital wallet has any meaningful effect on the whole stock market. The SET is now at 1994 levels... combine that with inflation and the Thai stock market has lost significant value over nearly 3 decades even if taking dividends into account. That's pretty bad.

 

1 minute ago, eisfeld said:

I have a hard time believing the digital wallet has any meaningful effect on the whole stock market.

Perhaps the impact/ political fallout is indirectly pushing the market down.... the debacle is shedding a poor light on the government. 

18 minutes ago, jacko45k said:

Yes, blaming covid, like blaming past Presidents, can only work for so long. 

 

     Oh, but Nixon was a crook!

7 minutes ago, eisfeld said:

I have a hard time believing the digital wallet has any meaningful effect on the whole stock market. The SET is now at 1994 levels... combine that with inflation and the Thai stock market has lost significant value over nearly 3 decades even if taking dividends into account. That's pretty bad.

 

I agree completely, I don't think there is any relationship between SET performance and the delay to the digital wallet scheme. Equity markets are a forward view of how markets think the economy will perform in the future. The potential for a buoyant tourism market is real so that's positive, the digital wallet only ever had the potential to create debt so that is not. And since Thailand is dependent on exports which in turn are dependent on overseas markets and have not performed well at all this year, the real reason for non-performance of the SET is more likely to exports and an overly strong dollar.

Damn! What to believe? One day all is well... toutism, exports, electronics, car components - the next day thailand is broke or in deficit. wth can i believe?

 

I hope this 10 000 bht giveaway will be the ruin of Puke thai and i pray that the canadian loonie fares better like in 2006.

 

Other than that who knows wth is going on with this economy

5 minutes ago, Pouatchee said:

Damn! What to believe? One day all is well... toutism, exports, electronics, car components - the next day thailand is broke or in deficit. wth can i believe?

 

I hope this 10 000 bht giveaway will be the ruin of Puke thai and i pray that the canadian loonie fares better like in 2006.

 

Other than that who knows wth is going on with this economy

With the exception of August (barely) and September, exports have been very poor, the only reason September looked good was because imports dropped by a huge amount which created a rare trade surplus for the first time since March.

 

https://tradingeconomics.com/thailand/balance-of-trade

2 hours ago, eisfeld said:

The SET is now at 1994 levels...

In the years following 1994, the USD went from about 25 to over 40.

8 minutes ago, sandyf said:

In the years following 1994, the USD went from about 25 to over 40.

1997

18 minutes ago, Mike Lister said:

1997

Indeed, upward movement started beginning of July and crossed the 40 mark at end of October.