The Stock Exchange of Thailand (SET) has been struggling to keep foreign investors from the selloff since the beginning of 2018. Up until today, the foreign investors have sold a total of 197.5 billion baht, pulling the market down to a limited growth.
However, Mr. Pakorn Peetathawatchai, President of the Stock Exchange of Thailand, still believes that Thailand’s pace of economic growth and corporate earning will help attracting foreign investors to return investing in Thai stock market as the U.S. interest rate will rise in a few months, while trade war between the U.S. and other countries is spreading and causing more than US$6 billion exodus of international funds, according to Mr. Pakorn, who exchanged his point of view in an interview with Bloomberg Television.
Thailand’s economic growth and stocks performance is “good information for investors to digest whether it’s the right time to come back,” said Mr. Pakorn Peetathawatchai. For Thai Economy, the well being economy has been doing very well, as well as financial sector and energy sector, which is more than 60% of market capitalization when combined.
The GDP growth, sustainable consumption development, government expenditure and number of tourists are all contribute to the Thai listed company in SET to grow 8% during the first half of 2018. The numbers make Thailand one of the world’s best performers in this quarter.
The coup may reflects on a bad perspective for foreign investors, but in Mr. Pakorn’s point of view, Thai business and political walk along different path. He points that when we look closer, we will notice that Thai business expand both globally and regionally. An average of 47% source of earning from SET listed companies are from international business. The overview of Thai economy is also great after a GDP of 2Q18 rises to 4.6%, while the GDP has been around 3% for about 10 years.
Mr. Pakorn believes that after hearing of these numbers, foreign investors will consider coming back to invest in Thailand again.