SET Index closed at 1,300.96 points, a 3.3 percent decrease from the previous month and an 8.1 percent decline from the end of 2023. Investors remain cautious, awaiting clarity on government economic stimulus measures and assessing the impact of capital market confidence-boosting measures announced late in June 2024.
For the six months through June, Consumer Products, Agro & Food Industry, and Technology industry groups outperformed the broader SET Index. The average daily trading value was THB 45.24 billion (approx. USD 1.24 billion), down 22.9 percent year-on-year for the January-to-June period. Foreign investors maintained their dominant position in trading activity for the 26th consecutive month, though with a net sell position of THB 115.98 billion.
The Thai capital market continued to attract new listings, with six listings on SET and 11 debuting on Market for Alternative Investment (mai), raising a combined THB 15.64 billion in the first half of 2024.
SET Senior Executive Vice President Soraphol Tulayasathien said that developing countries show promising signs of the rising production capacity for exports, indicating that the global economic recovery is gaining momentum. Moreover, several major central banks have slashed their policy rates after three years of monetary policy tightening as the global disinflation is back on track and nearing the target. Investors are eagerly awaiting the US Federal Reserve (Fed)’s first rate cut expected later this year. According to the historical data, the Fed’s rate cuts have typically been a boon to the emerging markets.
Thailand's macroeconomic indicators signal continuous improvement, with exports and tourism performing better than expected. The benign imports for private sector production and the higher government spending on consumption and investment, following earlier budget delays, indicate the robust economic outlook in the second half of 2024.
Regarding price to book (P/B) ratio, 51.5 percent of Thai stocks are trading below their book value, indicating undervaluation. The enforcement of the uptick rule in July 2024 is set to reduce daily short-selling volume and SET Index volatility. Additionally, the lockup period for investment in the ThaiESG fund has been shortened, bringing it closer to that of the former tax-saving Long-Term Equity Fund (LTF). This adjustment is expected to attract more domestic institutional investment, potentially boosting SET Index in the future.
Key highlights for June
- At the end of June 2024, SET Index dropped 3.3 percent from the previous month and 8.1 percent from the end of 2023 to close at 1,300.96 points. Investors are awaiting a clearer picture of the stimulus and weighing the impact of market confidence-boosting measures announced in late June 2024.
- For the six months to June, industry groups that outpaced SET Index were Consumer Products, Agro & Food Industry, and Technology.
- SET’s and mai’s average daily trading value for the first half of 2024 declined 22.9 percent over the same period last year to THB 45.24 billion. Foreign investors sold Thai shares with a net THB 115.98 billion for the first six months of 2024 as their trading ratio remained the highest among other types of investors for 26 consecutive months.
- In June 2024, there were two newly listed companies on mai : Chuwit Farm 2019 pcl (CFARM) and Maguro Group pcl (MAGURO).
- The Thai stock exchange’s forward P/E ratio at the end of June 2024 was 14.0 times, above the Asian stock markets’ average of 12.4 times. The historical P/E ratio stood at 15.6 times, exceeding the Asian stock markets’ average of 15.2 times.
- Dividend yield ratio at the end of June 2024 was 3.62 percent, higher than the Asian stock markets’ average of 3.16 percent.
Derivatives Market
- Thailand Futures Exchange (TFEX)’s daily trading volume in June 2024 averaged 545,083 contracts, up 38.7 percent from the previous month largely due to the increase in trading volume of SET50 Index Futures and Single Stock Futures. For the first six months of 2024. TFEX’s daily trading volume dropped 19.8 percent over the same period last year to 448,045 contracts mainly due to the decline in trading volume of Single Stock Futures and SET50 Index Futures.
