According to the Stock Exchange of Thailand (SET), Thailand’s stock market has experienced significant selling pressure from foreign investors, resulting in the sell-off of nearly 100 billion baht worth of shares in the first five months of 2023.
The main reasons for this foreign exodus are rising global interest rates, political uncertainty, weak corporate earnings, and a depreciating baht. These factors have diminished the allure of Thai equities, which have fallen behind.
Despite this, the SET expressed confidence in the recent easing of the US debt ceiling, which may bolster global sentiment and encourage investors to purchase more Thai stocks on the back of a rebounding Thai economy. Additionally, SET’s forward price-to-earnings ratio (P/E) remains below its historical average, which has motivated local institutional and individual investors to buy, resulting in a net position for the January-May period.
