President of Stock Exchange Expresses Optimism for Thai Capital Market Recovery in 2H24

Pakorn Peetathawatchai, President of the Stock Exchange of Thailand, showed confidence that the Thai stock market would rebound in the second half of 2024, following the government budget disbursement, tourism, and the slowdown of stock selloff by foreign investors, while also indicating that the country’s politics were not the main catalysts for the market.

He stated that the overall outlook for the Thai stock market in the second half of 2024 would stand in a better position compared to the first half, as it would be driven by high-season tourism in 4Q24 and the government budget disbursement. Meanwhile, if the US Federal Reserve cut its interest rates, such circumstances would support investment in emerging markets.

Regarding political concerns in the country, there were a number of cases that were under consideration but would not affect the fund flow from foreign investors. On the other hand, the outlook of the Thai economy was more impactful in this regard, and it was on a positive trajectory.

Though the overall outlook of the Thai stock market in the current state is moving downward, the fund flow from foreign investors remains larger compared to when there were negative reports on the country’s economy, as foreign investors focus on economic growth and the effects of the economy on the listed companies.

Pakorn noted that there were more than 3,000 major funds participating in the roadshow in Hong Kong, such as Balrog and JPMorgan. The government and the Stock Exchange of Thailand had presented the unique selling point of Thailand as follows;

  1. Thailand is friendly to all kinds of trades in the world, given the support from the Board of Investment of Thailand (BOI) which was much higher compared to the past.
  2. The measures from the Stock Exchange of Thailand, such as price restrictions and naked short selling, will not have any effect on foreign investors.
  3. Thailand possesses a high proportion of clean energy sources with stability to support businesses.

The Stock Exchange of Thailand is interested in the Middle East region to be the next destination for a potential roadshow in the future, as there are many interesting sources of funds.