SET undaunted by foreigners' net selling

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SET undaunted by foreigners' net selling
VARIN TRINO
THE NATION

BANGKOK: -- THE STOCK EXCHANGE of Thailand sees no reason to be concerned over the unloading of Thai stocks by foreign investors, while expecting securities trading accounts to reach 1 million next year.

Kesara Manchusree, an executive vice president, said yesterday that foreign investors had retreated from the local bourse as they reallocated their assets across the region, and the market situation was still manageable.

Year to date, net foreign sales have reached Bt100 billion, less than the Bt160 billion in 2008 when total market capitalisation was not high as it is currently. If the global market situation improves, foreign investors will likely flock back to the Thai equity market, she said.

There has been a slowdown in new account openings since the SET Index started dropping last month. Despite this, the bourse still targets 70,000 new investors for the whole year. In the first half, there were 69,400 accounts of new investors, while new trading accounts totalled 102,000, beating the whole-year target of 96,600.

As of last month, trading accounts totalled 909,000 with an estimate to touch 910,000 by year-end.

If new accounts rise by 100,000, next year could be the first to see 1 million trading accounts.

There has also been a slight decline in active trading accounts. In the first half, active trading accounts accounted for 31 per cent of total trading accounts, but only 30 per cent in July.

"This year, the Thai stock market moved sideways in a range of 30-40 points from the global market uncertainties. Investors have to undertake risk management and diversification. Investing overseas is a means of risk management," Kesara said.

The SET, in collaboration with financial institutions, has conducted a study with a plan to launch depository receipts next year.

The SET is also planning to launch the Sustain Index for upgrading listed companies' corporate governance. It is searching for tools to help in the selection of companies for the index. Three parts are screened abroad - the environment, social responsibility and governance.

One more sector, property development, will be added to the board for clearer data comparison. Developers are currently included in the construction services sector.


-- The Nation 2013-08-22

[chooka]

Damn Farangs

[lostmebike]

And why would they be daunted?

Thailand doesn't need foreign investment nor does it need foreign tourists making the place look untidy. And it certainly doesn't even need to be recognised by foreigners or foreign countries. Thailand is the centre of the world! Don't you know???

[MacWalen]

Seems like buying opportunity although it can still go lower.

[BlackJack]

"Year to date, net foreign sales have reached Bt100 billion"

give it time

once the avalanch starts then its hard to stop

[fletchsmile]

"Year to date, net foreign sales have reached Bt100 billion"

give it time

once the avalanch starts then its hard to stop

100bio is about 0.8% of the SET's market cap for a bit of perspective

[Gomyway]

Here's a picture of how the stock markets declined in the last three month (sorry it's in German).

[givenall]

dam_n Farangs

as usual, everything is just great.

[scotinsiam]

No ploblem here, foreigner think too mut bah.

[NeverSure]

SET "undaunted" even though it's dropped 25% in the past 3 months.

But buying more rice should cause it to go up.

Moving construction into the index will temporarily rig help the numbers.

[Naam]

"Year to date, net foreign sales have reached Bt100 billion"

give it time

once the avalanch starts then its hard to stop

100bio is about 0.8% of the SET's market cap for a bit of perspective

why do you spoil with a boring fact wishful thinking Fletch?

haven't we all read and digested since seven years in a dozen Thaivia threads the forecasts of dozens of resident eggsburts that the Thai economy is doomed and the Thai Baht will be nearly worthless...

...any time soon?

[fletchsmile]

"Year to date, net foreign sales have reached Bt100 billion"

give it time

once the avalanch starts then its hard to stop

100bio is about 0.8% of the SET's market cap for a bit of perspective

why do you spoil with a boring fact wishful thinking Fletch? alt=huh.png width=20 height=20>

haven't we all read and digested since seven years in a dozen Thaivia threads the forecasts of dozens of resident eggsburts that the Thai economy is doomed and the Thai Baht will be nearly worthless...

...any time soon?

Very true Dr.Naam. Good indicators for us contrarians though

SET "undaunted" even though it's dropped 25% in the past 3 months.

But buying more rice should cause it to go up.

Moving construction into the index will temporarily rig help the numbers.

At the risk of spoiling this one too with boring facts, the screen I'm now looking at, at the time of writing shows the SET down 15.15% in the last 3 months. I'm still trying to work out how I missed the 10% rally in the last 6 hours - during 5 and a half of those 6 hours the market was closed too.

http://marketdata.set.or.th/mkt/marketsummary.do?language=en&country=US

YTD down 2.88% - excluding dividing income.

I can only assume for a 3 month timeframe someone's looking at trading. Have done very nicely myself on that by selling a few options, for some healthy little extra profit. For the main part though I remain a long term "undaunted investor", with 20%+ p.a. gains since late 1990's. All part of the Thai rollercoaster.

Cheers

Fletch

[midas]

100bio is about 0.8% of the SET's market cap for a bit of perspective

why do you spoil with a boring fact wishful thinking Fletch? alt=huh.png width=20 height=20>

haven't we all read and digested since seven years in a dozen Thaivia threads the forecasts of dozens of resident eggsburts that the Thai economy is doomed and the Thai Baht will be nearly worthless...

...any time soon?

Very true Dr.Naam. Good indicators for us contrarians though

SET "undaunted" even though it's dropped 25% in the past 3 months.

But buying more rice should cause it to go up.

Moving construction into the index will temporarily rig help the numbers.

At the risk of spoiling this one too with boring facts, the screen I'm now looking at, at the time of writing shows the SET down 15.15% in the last 3 months. I'm still trying to work out how I missed the 10% rally in the last 6 hours - during 5 and a half of those 6 hours the market was closed too.

http://marketdata.set.or.th/mkt/marketsummary.do?language=en&country=US

YTD down 2.88% - excluding dividing income.

I can only assume for a 3 month timeframe someone's looking at trading. Have done very nicely myself on that by selling a few options, for some healthy little extra profit. For the main part though I remain a long term "undaunted investor", with 20%+ p.a. gains since late 1990's. All part of the Thai rollercoaster.

Cheers

Fletch

fletchsmile I'm just curious with these kinds of headlines (see below) should the worst materialise, then what would be your general philosophy and strategy? Would you personally continue to ride it out, or even buy more or do you sell ? Do you personally factor in these kinds of geopolitical events in your investment strategy? Just interested

http://www.cbsnews.com/8301-18563_162-57599944/u.s-preps-for-possible-cruise-missile-attack-on-syrian-govt-forces/

[humbug]

nomura capital had a good piece

80 percent of funds leaving from the outset of qe would take the set to 1310 and 90 percent would take it to 1267 you never know it could overshoot down to 1200 but its better for me to sit tight and wait a little just in case

i mean last week every day down even a slight up on fri morning but finished down

it looks like a few mini rally and then back down at which point i will step in

[fletchsmile]

fletchsmile I'm just curious with these kinds of headlines (see below) should the worst materialise, then what would be your general philosophy and strategy? Would you personally continue to ride it out, or even buy more or do you sell ? Do you personally factor in these kinds of geopolitical events in your investment strategy? Just interested

http://www.cbsnews.com/8301-18563_162-57599944/u.s-preps-for-possible-cruise-missile-attack-on-syrian-govt-forces/

I guess it depends on the objectives and various angles, e.g

For myself and the wife:

I mainly just carry on holding, and ride out, as I'm looking long term and "long term capital preservation" rather than building wealth. Most of our financial assets I hold for "long term and investment".

I do have some trading portfolios making up about 10% of the value of the long term investment portfolios. This is for "hedges, trading, short term speculation" and anything else I fancy taking a short term view in, so sometimes includes geo-political events, and sometimes would add agressively or sell out. The particular event you highlight would be a factor in adding to gold ETFs, also given the weakness of gold this year and starting to turn around it adds weight to the story.

Something in my conscience sort of stops me actively buying into the companies that would make money out of wars and conflict. I don't like the idea of deliberately trying to make money out of other people's suffering. I'm sure no doubt some of the companies I invest in directly or indirectly probably do, but I don't pro-actively seek them out for those sole reasons.

One example recently I bought some shares in Circle Oil (COP:LN) they looked beaten up as resources stocks have been this year, plus being linked to Egypt. They're not adding to the conflict, and if anything it's slightly supporting the country by continuing to invest in companies linked to Egypt, while at the same time looks good value with interests in other countries..

For the kids:

I just carry on baht cost averaging in mainly equity based funds, looking "long term for wealth building and investment", and ignore short term events.

For my mum:

I just carry on holding as her portfolios are set to mainly generate income from fixed income and equity funds. I don't speculate with this at all, so wouldn't be looking to capitalise. But if something looks to adversely change the long term income stream and increase risks, I'd adjust for safer options.

BTW How do you react/ change?

Cheers

Fletch

Edited August 24, 2013 by fletchsmile