Yesterday, The Stock Exchange of Thailand (SET) closed at 1,219.62 points, a 2.34% increase or 27.87 points, with a trading value of THB 45.12 billion. This development is due to foreign investors purchasing Thai stocks for about THB 4.49 billion.
As a result, the total value of Thai stocks that foreign investors had purchased in early July had reached THB 11.13 billion, with focus mostly on major stocks. This allowed 48 stocks in the SET50 index to close with gains yesterday, while PTT’s share remained unchanged, and CBG ended the day with a loss. In addition, between July 7 to 23, the foreign investors’ purchasing has pushed SET’s index risen by 100 points, or about 8.39% increase.
Mr. Kitpon Praipaisarnkit, Vice President at UOB Kay Hian Securities, stated that foreign investors have been purchasing Thai stocks to diversify their investments from the U.S.’ stock market to emerging markets. Inflows were seen on the back of rising risk in Wall Street as trade war has yet to relax.
Mr. Kitpon also added that the purchasing from foreign investors will continue but at a gradual pace. Some may switch to profit taking as Thailand’s economy has yet to show a strong signal of recovery. As for the stock that foreigners have been focused on, Mr. Kitpon stated that most of them are related to energy, retail business, tourism, and packaging sectors.
Mr. Koraphat Vorachet, Deputy Managing Director and Division Head of Research at Krungsri Securities (KSS), stated that Thai stocks may extend gains due to the purchasing from the foreign investors, based on its strong momentum.
