Asia Plus Securities wrote that global equity markets have shown distinct contrasts in March, with alternative assets, such as cryptocurrencies, including Bitcoin and Ethereum, as well as commodities like WTI and Brent crude oil, having posted significant gains.
In comparison, U.S. stock markets recorded only modest declines, while Asian equities faced pronounced selling pressure. Notably, Thailand’s SET Index registered a drop of 7.8% month-to-date.
The main drag on Asia-Pacific equities has been the depreciation of local currencies against the US dollar. The Thai baht weakened by 3.76%, making it the second-worst performing Asian currency after the South Korean won, which declined by 3.94%.
This triggered fund outflows from most of the region’s equity markets during the month, affecting markets such as Taiwan, South Korea, India, and Indonesia. In Thailand, foreign investors recorded net sales, with equity market outflows reaching THB 33.5 billion and bond market outflows totaling over THB 34 billion month-to-date.
Meanwhile, the brokerage noted that despite the overall sell-off in Thai equities, foreign investors have selectively shifted their portfolios into large-cap stocks with specific positive factors or those benefitting from global trends. Among the 15 most accumulated stocks by foreign investors this month, several groups stand out:
- In the energy sector, PTTEP saw the highest inflows, with more than THB 4.6 billion invested, supported by a surge of over 40% in global crude oil prices during the month. Other energy stocks, such as TOP and SPRC, also experienced net buying.
- The commerce sector, including leading consumers and retail companies, continued to be viewed as a safe haven, with stocks like CPALL, CPN, and KAMART attracting interest from investors.
- Shares in tourism and transport, such as AOT, MINT, and CENTEL, were favored by investors positioning for a recovery in the travel sector.
- Companies that are exposed to global supply chains and energy costs, including GULF, PTTGC, and IVL, have already absorbed some impact from the ongoing geopolitical conflicts.
