The Stock Exchange of Thailand (SET) Index at end-July dropped 1.1 percent from the previous month but increased 9.5 percent from end-2018 to 1,711.97 points. The average daily trading value of SET and Market for Alternative Investment (mai) in July was THB 64.05 billion (approx. USD 2.07 billion), rising 23 percent from the same period a year earlier. Foreign investors were net buyers of Thai shares for the fourth consecutive month, representing the highest monthly net inflows in ASEAN in July.
SET Senior Executive Vice President Soraphol Tulayasathien said that foreign investors have maintained their net-buy position in July as confidence was boosted by domestic political stability and the upgraded country outlook from international credit rating agencies. However, it was necessary to monitor external factors including the escalating trade tensions between the world’s top two economies, Japan-South Korea trade dispute and the US Federal Reserve’s monetary policy.
Key highlights for July
Securities market:
- SET Index ended July at 1,711.97 points, down 1.1 percent from end-June but up 9.5 percent from end-2018. Agro & Food, Technology, Resources, and Services industry groups fared better than SET Index.
- In July, foreign investors bought a net THB 20.52 billion of Thai shares.
- The average daily trading value of SET and mai in July increased 23 percent y-o-y to THB 64.05 billion.
- Forward and historical P/E ratios of SET were 16.4 times and 18.5 times respectively at end-July, compared with the Asian peers of 14.6 and 16 times respectively.
- Dividend yield ratio of SET was 3.02 percent at the end of July, higher than MSCI Emerging Market's ratio of 2.89 percent.
- A combined market capitalization of SET and mai at end-July rose by 10.5 percent from end-2018 to THB 17.9 trillion, moving in accordance with SET Index.
- Fund mobilized via IPOs during the January-to-July period of 2019 was THB 14.13 billion.
Derivatives market:
- Compared to the first half of 2019, the average derivatives trading volume in July increased by 34 percent to 509,534 contracts per day.
