File photo for reference only

 

Thailand's stock market is experiencing a significant withdrawal of foreign capital, with investors pulling out billions due to political instability and sluggish economic growth.

 

Since the start of the year, foreign investors have offloaded around 80 billion baht from Thai equities, making Thailand one of the world’s worst-performing markets. This exodus is primarily driven by the nation’s weak GDP growth, leading to disappointing corporate earnings compared to regional peers, alongside ongoing political uncertainties.

 

Starting in January 2025, net sales by overseas investors have surpassed 78 billion baht, reflecting Thailand’s slow economic progress within ASEAN and persistent domestic political instability. These factors are diminishing the Thai stock market’s appeal relative to other regional exchanges.

 

Analysts point out a global shift towards technology investments, whereas Thai businesses remain heavily based in traditional sectors. Ratasak Piriyanont from Kasikorn Securities highlighted this decline, linking poor stock performance to low GDP growth and uninspiring corporate earnings.

 

The gap between Thailand’s economy and global trends is widening, as worldwide capital gravitation favours high-growth, tech-driven companies. While markets in China, Taiwan, and South Korea show recovery, Thai stocks lag behind.

 

Thailand’s risk of a technical recession is growing, partly due to a surge in exports that could lead to reduced orders later in the year. This blend of challenges suggests foreign investors may avoid Thai stocks for the foreseeable future, awaiting clear positive signals.

 

Apichart Phubanjerdkul of TISCO Securities noted a consistent trend of foreign investors selling Thai equities. He suggests these investors might be using automated ‘Robot’ programmes for short-term gains, indicating a shift in focus from long-term commitments.

 

In summary, Thailand needs to address both economic and political issues to regain investor confidence and align its market appeal with evolving global investment trends.

 

  Adapted by ASEAN Now from The Nation 2025-07-01

 

 

Not phasing the 4X markets  ----: Yet

Exodus to where/what? Gold? Renminbi ?

And the Baht is as strong as ever...

1 hour ago, redwood1 said:

And the Baht is as strong as ever...

 

Isn't that something?   Western countries keep printing money and taking on debt. 

1 hour ago, redwood1 said:

And the Baht is as strong as ever...

 

...despite all those outflows. 🤔 

They say exactly the same things about the UK! Where are 'they' all going? Dubai? Certainly not China where the wealthy are exporting their capital as fast as is legally possible. 

Sad.  Baht rising/Dollar weakening/SET losing.  Hard times coming.

15 hours ago, snoop1130 said:

Thailand's stock market is experiencing a significant withdrawal of foreign capital, with investors pulling out billions due to political instability and sluggish economic growth.

One day Thailand will wake up and sort it's politics out.

2 minutes ago, hotchilli said:

One day Thailand will wake up and sort it's politics out.

But probably not in our lifetimes. 

1 minute ago, mfd101 said:

But probably not in our lifetimes. 

Thailand still stuck in the old family/clan warfare mode.

18 minutes ago, hotchilli said:

One day Thailand will wake up and sort it's politics out.

Turning thailand into a refuge for Russians avoiding the war and making it a gunga haven for drug dealers and criminals was the biggest mistake of all times 

It'll be interesting to see what happens when the US trade agreement is completed.

14 hours ago, Magictoad said:

They say exactly the same things about the UK! Where are 'they' all going? Dubai? Certainly not China where the wealthy are exporting their capital as fast as is legally possible. 

 

Exodus from UK is real. 

Exodus from China had been done decades ago,  not 2025. 

Exodus from Thailand ?    Not so sure at this stage.   

 

After all Thailand issue and situation now is not as desperate as 2020/21 ( international tourism all dead )   and 2012/13  ( edging towards internal civil war ) 

34 minutes ago, sscc said:

 

Exodus from UK is real. 

Exodus from China had been done decades ago,  not 2025. 

Exodus from Thailand ?    Not so sure at this stage.   

 

After all Thailand issue and situation now is not as desperate as 2020/21 ( international tourism all dead )   and 2012/13  ( edging towards internal civil war ) 

But foreigners not being allowed Thai bank accounts, and general nosiness about foreigner income, and tax residency must have had a significant effect.

18 hours ago, 0ffshore360 said:

Exodus to where/what? Gold? Renminbi ?

european equities first half, now piling into US (tech)

Thanx to the stupid bark of tax chief?

Citing_"taxing overseas income",  without any legal backing(actual law's made in parliament).

 

18 hours ago, redwood1 said:

And the Baht is as strong as ever...

 

Often because of the lower inflation rate here, compared to tne west.

 

Higher inflation  rate means monetary value decreases.

Lower inflation  rate means the opposite.

 

And also because Thailand  is still in Black(unlike most of the first world nations).

Reminds me of 1997/98. The difference now is that Thailand has significant reserves to draw on, or so we are told. Back then Thailand was being urged to devalue the Baht in order to urgently boost exports and curb imports. It failed to do so and the result was the monumental crash which reverberated all over the world. 

Thailand is just a flip-flopping nightmare to any potential foreign investor. Nobody knows what the taxation rules will look like next year and which policies they will flip-flop on next. You just cannot make any longterm plans in such an environment. 

5 hours ago, kiwikeith said:

Turning thailand into a refuge for Russians avoiding the war and making it a gunga haven for drug dealers and criminals was the biggest mistake of all times 

Indeed, post Covid in it's rush to bringing in the revenue it also also brought in the dregs.

...Three (?) Days Ago...They Claimed It Was Due To... 'U.S. Tariffs'..... (?)

Trump just charged Vietnam with 20% taxes today.And Vietnam agree to not charging any taxes from US imports.

I guess Thailand is one of the next countries who will get a bad msg from USA.