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The Stock Exchange of Thailand (SET) Index at the end of January advanced 4.2 percent from end-2017 to 1,826.86 points, while a combined market capitalization of SET and Market for Alternative Investment (mai) at the end of January rose to THB 18.7 trillion (USD 584.4 billion) and the average daily trading value of both stock markets in January soared by 35 percent y-o-y to THB 78.8 billion. On January 24, SET Index closed at 1,838.96 points, an all-time high, since its inception in 1975.
SET Senior Executive Vice President Pakorn Peetathawatchai said that SET Index, tracking other Asian stock markets’ gain, continued its record-setting streak in January. External factors including the rising oil price and the brighter US economic outlook were the major contributors to the Thai stock market rally, while the improving Thai economy, driven largely by exports and tourism, also bolstered the market sentiment.
However, in 2018 investors should keep eyes on China's economic stability, the US rate hike including geopolitical risk.
Key highlights for January
Securities:
- In January, foreign investors sold a net THB 5.47 billion of Thai shares, bucking the regional and Thai bond market trends.
- SET index ended January at 1,826.86 points, up 4.2 percent from end-2017. Four industry groups that outperformed SET Index were Resources, Industrials, Consumer Products and Financials, respectively.
- Forward P/E ratio of SET was 16.6 times at end-January, while historical P/E ratio was 19.82 times. Both forward and historical P/E ratios of the Thai stock market were higher than the average ratio of its Asian peers' at 15.26 times and 17.82 times, respectively.
- Dividend yield ratio of SET was 2.68 percent at end-January, exceeding Asian stock markets' average ratio of 2.35 percent.
- A combined market capitalization of SET and mai at end-January was THB 18.7 trillion, up 4.2 percent from the end of 2017.
- The average daily trading value of SET and mai in January amounted to THB 78.8 billion, up 35 percent from the same period a year earlier.
Derivatives:
- In January, the average derivatives trading volume rose by 30.5 percent from the previous month to 510,980 contracts per day, largely driven by the increase in transactions of SET 50 Index Futures and SET 50 Index Options, as well as Single Stock Futures.
