Finance Ministry is set to introduce a 500 billion baht fund to support stock market

[snoop1130]

 

Stock market experts are supporting a proposal by Thailand’s Ministry of Finance to create a new fund to increase investments in Thai shares. They expect this will lead to a rise in trade during the last quarter of this year.

 

The Finance Minister, Pichai Chunhavajira, wants to set up the fund to improve the lackluster performance of the stock market. The planned fund is going to be similar to the past state-managed Vayupak Fund, which focused on Thai shares with solid fundamentals. The total combined value for two funds would be 500 billion baht ($13.6 billion), with 150 billion baht ($4 billion) marked for public investment.

 

The Ministry plans to formalize the details by the end of third quarter of this year. On top of this, they also plan to revise the conditions for Thai environmental, social, and governance (ESG) funds. Veeravat Virochpoka, who is the research head at FSS International Investment Advisory Securities, said the proposed changes would involve increasing tax incentives from the current 100,000 baht ($2,700) to a maximum of 300,000 baht ($8,200). The holding period requirement could also be reduced from eight to five years.

 

 

Veeravat further added that this Vayupak-style fund might stimulate demand in the stock market from the last quarter of this year onwards. He stated that an investment of 10 billion baht ($272 million) in the fund can potentially raise the Stock Exchange of Thailand (SET) index by 20 to 30 points.

 

Asia Plus Securities (ASPS) noted that the revised Thai ESG fund could draw in 60 to 70 billion baht ($1.6 billion to 2 billion) of investments annually to the SET, primarily from institutional investors.

 

ASPS’s researchers suggested that a revised Thai ESG fund would motivate institutional investors to allocate more resources toward their portfolios. They expect this to be noticeable during the mid-year window dressing, as reported by the Bangkok Post. A 1 to 2% increase in the SET is expected for every 10 billion baht in investment.

 

File photo for reference only

 

-- 2024-06-26

 

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[Pouatchee]

Geeeeez... with the digital wallet and now this... i really hope to see the bht go BOOM 🧨🎆

[jaywalker2]

Maybe it's time to invest in Thai shares. The only problem is whether Srettha is even going to last until the end of the year.

[Ben Zioner]

No worries, the middle class and the foreigners will pay it all, 500 billions for the bludgers, 500 billions for the rich, Pheu Thai at it's best.

[lordgrinz]

500 Billion baht here, 500 billion baht there, money just grows on trees here.

[John Drake]

16 hours ago, snoop1130 said:

The planned fund is going to be similar to the past state-managed Vayupak Fund, which focused on Thai shares with solid fundamentals.

 

I wonder just who will own those companies getting the stock pump.

[newbee2022]

19 hours ago, snoop1130 said:

 

Stock market experts are supporting a proposal by Thailand’s Ministry of Finance to create a new fund to increase investments in Thai shares. They expect this will lead to a rise in trade during the last quarter of this year.

 

The Finance Minister, Pichai Chunhavajira, wants to set up the fund to improve the lackluster performance of the stock market. The planned fund is going to be similar to the past state-managed Vayupak Fund, which focused on Thai shares with solid fundamentals. The total combined value for two funds would be 500 billion baht ($13.6 billion), with 150 billion baht ($4 billion) marked for public investment.

 

The Ministry plans to formalize the details by the end of third quarter of this year. On top of this, they also plan to revise the conditions for Thai environmental, social, and governance (ESG) funds. Veeravat Virochpoka, who is the research head at FSS International Investment Advisory Securities, said the proposed changes would involve increasing tax incentives from the current 100,000 baht ($2,700) to a maximum of 300,000 baht ($8,200). The holding period requirement could also be reduced from eight to five years.

 

 

 

Veeravat further added that this Vayupak-style fund might stimulate demand in the stock market from the last quarter of this year onwards. He stated that an investment of 10 billion baht ($272 million) in the fund can potentially raise the Stock Exchange of Thailand (SET) index by 20 to 30 points.

 

Asia Plus Securities (ASPS) noted that the revised Thai ESG fund could draw in 60 to 70 billion baht ($1.6 billion to 2 billion) of investments annually to the SET, primarily from institutional investors.

 

ASPS’s researchers suggested that a revised Thai ESG fund would motivate institutional investors to allocate more resources toward their portfolios. They expect this to be noticeable during the mid-year window dressing, as reported by the Bangkok Post. A 1 to 2% increase in the SET is expected for every 10 billion baht in investment.

 

File photo for reference only

 

-- 2024-06-26

 

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To come with new fund in economically uneasy times is not a good idea

[hotchilli]

3 hours ago, lordgrinz said:

500 Billion baht here, 500 billion baht there, money just grows on trees here.

I've seen these trees at temples... they really exist

[lordgrinz]

Just now, hotchilli said:

I've seen these trees at temples... they really exist

 

It's disgusting how much money these temples have, especially on the backs of poor people thinking they can buy their way to a better afterlife.  

[hotchilli]

5 minutes ago, lordgrinz said:

 

It's disgusting how much money these temples have, especially on the backs of poor people thinking they can buy their way to a better afterlife.  

It's how the biggest ponzi scheme in Thailand works... buy a first row seat in heaven.

[OneMoreFarang]

Now we can all guess where those 500 billion will end up.

No points for the correct answer.

 

[Srikcir]

4 hours ago, lordgrinz said:

500 Billion baht here, 500 billion baht there, money just grows on trees here.

Blame it on cannabis

[koolkarl]

Again the government is propping up legalized gambling, the stock market. Maybe they are anticipating a major sell off which will likely happen.  When Al Capone was king of Chicago, he was asked why he never "invested" in the stock market, his answer, "nah, its too crooked."  Just ask the Pelosis. 

[klauskunkel]

So, who does a company have to pay off for its shares to be bought and boosted by this new fund? In other words, who is the fund manager?

[outsidetrader]

If that kicks in ,i will certainly sell into the massive rally ,)

[john donson]

a bit like the FED in usa that manipulate the bonds market? or pump it into stocks like vanguard?

[Gknrd]

Thailand is headed in the direction of China, you want to loose 20-30 percent of your investment in 5-10 years invest in Thailand or china. While the S&P 500 is up double digits. Scams never stop in SE Asia. Luckily western investors have learned their lesson. 

 

LOS's ( Land of Scams )

Edited Thursday at 02:13 PM by Gknrd

[Enzian]

If something like this were inaugurated by a private entity, wouldn't the directors be at risk of jail terms?