More foreign investment in Thai shares anticipated

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INVESTOR CONFIDENCE
More foreign investment in Thai shares anticipated
Petchanet Pratruangkrai
Erich Parpart
The Nation

BANGKOK: -- Foreign investors were net-buyers of Thai shares this month, narrowing their net-sales from the beginning of this year to Bt103.4 billion.

Yesterday, their net-buy was valued at Bt1.7 billion though the composite index lost 1.51 points or 0.11 per cent to end the day at 1,392.15 points, according to the Stock Exchange of Thailand data.

In contrast, the sharp fall in the stock market in September apparently continued to spook local non-institutional investors. Yesterday, they sold shares for Bt2 billion net, boosting the month-to-date net-sell to Bt10.4 billion. Still, so far this year, they remained the net-buyers with net-buy position of Bt51 billion.

Stock markets across Asia Pacific lost 0.5 per cent yesterday, ending the 6-day winning streak that was propelled by a global surge in risk appetite as expectations of the US Federal Reserve hiking interest rates this year ebbed.

In a related development, a monthly survey by the Federation of Thai Capital Market Organisations (FETCO) showed an increase in foreign investor confidence in the Thai stock market in the next three months.

The FETCO NIDA Investor Sentiment Index for December shows foreign institutional investors confidence at 101.48 points, the highest score in five months. The survey was conducted in September. It showed a sharp improvement from 59.57 point.

Confidence rose in all sectors particularly construction and steel, as the government's economic stimulus package is expected to boost the economy. Yet, downside risks persist including weak global demand, low commodity prices, the recovery in the tourism industry as well as political stability.

FETCO chairman Vorawan Tarapoom said foreign investors have shown stronger confidence in the Thai economy.

Thiti Tantikulanan, head to Kasikorn Assets Management, said Thai economy has almost passed the lowest level though downside risks remain. Possible to disrupt the economy are China's slowdown, US rate hike and currency depreciation in emerging markets.

"The Thai economy will recover in a 'U-shape'. The slow growth period could stay for a while," he said.

Source: http://www.nationmultimedia.com/business/More-foreign-investment-in-Thai-shares-anticipated-30270477.html


-- The Nation 2015-10-09

[maewang99]

Hilarious. 2015 and the "news" outlets still don't face any backlash, even if at best it would only be comedic backlash, but in their face, on yet another "foreigner" storyline? Each and every one of the Thai securities this article refers to on the buy side will be registered at the TSD in the name of a nominee, and were for all those on the sell side. Every single share. Calling these guys and gals "foreigners" is cute and funny however, in the world in which we actually live in, no one except the overseas bank or brokerages client officer, or online trading website, knows who the actual security holders are. We do know they don't need to file a 59-2 report with the Thai SEC, and stuff like that, but we don't know about their nationality being Thai or not Thai or dual Thai something. If you are the guy posted this, I'll give you the benefit of the doubt that you know "foreigner" is read as "insider"..... but I have a rant as I am an American that has to use a nominee by my US broker (but not my US brokers fault for doing business the same as everyone else does) and means that I don't have the orange mailers from the TSD that the local Revenue Office insists on for my Thai tax returns. But what goes around comes around... FATCA will eventually begin to bite for real in both directions of compliance, that even means Thailand, notwithstanding that the Thai SEC regulations are based on an era of paper work made from trees and bamboo, not computers. In the mean time, "it's those dang foreigners again"... "eating our lunch".... etc etc etc etc etc .. all "reading the same book". hahhahha!!!!

Edited October 9, 2015 by maewang99

[Srikcir]

"foreign investors have shown stronger confidence in the Thai economy."

The Thai stock market is crocodile bait right now. That's hardly a ringing endorsement for the economy.

[Orac]

Hilarious. 2015 and the "news" outlets still don't face any backlash, even if at best it would only be comedic backlash, but in their face, on yet another "foreigner" storyline? Each and every one of the Thai securities this article refers to on the buy side will be registered at the TSD in the name of a nominee, and were for all those on the sell side. Every single share. Calling these guys and gals "foreigners" is cute and funny however, in the world in which we actually live in, no one except the overseas bank or brokerages client officer, or online trading website, knows who the actual security holders are. We do know they don't need to file a 59-2 report with the Thai SEC, and stuff like that, but we don't know about their nationality being Thai or not Thai or dual Thai something. If you are the guy posted this, I'll give you the benefit of the doubt that you know "foreigner" is read as "insider"..... but I have a rant as I am an American that has to use a nominee by my US broker (but not my US brokers fault for doing business the same as everyone else does) and means that I don't have the orange mailers from the TSD that the local Revenue Office insists on for my Thai tax returns. But what goes around comes around... FATCA will eventually begin to bite for real in both directions of compliance, that even means Thailand, notwithstanding that the Thai SEC regulations are based on an era of paper work made from trees and bamboo, not computers. In the mean time, "it's those dang foreigners again"... "eating our lunch".... etc etc etc etc etc .. all "reading the same book". hahhahha!!!!

Why don't you just open a local brokerage account, buy NVDR and then you will get your orange mailers from the TSD?

[yrag]

be investing in china...who thailand is embracing now

[elgordo38]

Here the word anticipating means hoping praying miracles will happen

[Sam Jones]

Thai Economy is a train wreck ...

[Time Traveller]

Hilarious. 2015 and the "news" outlets still don't face any backlash, even if at best it would only be comedic backlash, but in their face, on yet another "foreigner" storyline? Each and every one of the Thai securities this article refers to on the buy side will be registered at the TSD in the name of a nominee, and were for all those on the sell side. Every single share. Calling these guys and gals "foreigners" is cute and funny however, in the world in which we actually live in, no one except the overseas bank or brokerages client officer, or online trading website, knows who the actual security holders are. We do know they don't need to file a 59-2 report with the Thai SEC, and stuff like that, but we don't know about their nationality being Thai or not Thai or dual Thai something. If you are the guy posted this, I'll give you the benefit of the doubt that you know "foreigner" is read as "insider"..... but I have a rant as I am an American that has to use a nominee by my US broker (but not my US brokers fault for doing business the same as everyone else does) and means that I don't have the orange mailers from the TSD that the local Revenue Office insists on for my Thai tax returns. But what goes around comes around... FATCA will eventually begin to bite for real in both directions of compliance, that even means Thailand, notwithstanding that the Thai SEC regulations are based on an era of paper work made from trees and bamboo, not computers. In the mean time, "it's those dang foreigners again"... "eating our lunch".... etc etc etc etc etc .. all "reading the same book". hahhahha!!!!

What are you complaining about?

1. Most countries have and track data on purchases of securities by foreigners. There's nothing sinister about that.

2. It's very easy to know, because the brokerage and clearing house know which category you fall under - foreign, local, or institutional - the moment you fill out the application for account opening

3. If you live in Thailand it's really foolish to be using a US broker to own thai shares, since you'll not only miss out on the tax benefits, but also you will usually pay higher brokerage rates as well.

Edited October 10, 2015 by Time Traveller

[Berkshire]

Hmmm, this may explain (partially) the strengthening of the Thai Baht last couple of weeks....foreign currency flowing in.