The Stock Exchange of Thailand (SET) Index at the end of March rose 4.8 percent from end-2018 to 1,638.65 points, in tandem with other Asian bourses. The average daily trading value of SET and Market for Alternative Investment (mai) in March amounted to THB 41.83 billion (approx. USD 1.31 billion), down 10.5 percent from the previous month. Local institutional and retail investors were the net buyers in March.
SET Senior Executive Vice President Soraphol Tulayasathien said that SET Index yielded positive returns in the first quarter of 2019. Weighed by uncertainties in domestic and external markets, foreign investors took a wait and see approach in March while local institutional and retail investors were the net buyers. Additionally, local institutions have continued to be net buyers for 20 consecutive months.
The average daily trading value of SET and mai in March declined from the previous month while derivatives market’s trading volume increased. This reflected that investors opted derivatives tool to manage their risks. The fund raised in the Thai stock market through initial public offerings (IPOs) during the first quarter of this year remained the highest in ASEAN, added Soraphol.
Following listed companies’ CEO monthly survey, they have optimistic views towards the outlook of economy and business growth in 2019. This is translated into a positive sign for long-term investment. Of all the CEOs responded in the survey, 74 percent of them expected the Thai economy to grow by 3-4 percent in 2019 while 59 percent expected the 1H/2019 performance will better in the latter half of 2018 (according to data as of 20 March 2019).
Key highlights for March
Securities market:
- SET Index ended March at 1,638.65 points, rising 4.8 percent from end-2018. Agro & Food, Technology, Resources, Property & Construction and Services industry groups outperformed SET Index.
- In March, foreign investors were net sellers of THB 16.44 billion while local institutional investors carried on their buying streak since last year.
- The average daily trading value of SET and mai in March declined 10.5 percent from the preceding month to THB 41.83 billion.
- Forward and historical P/E ratios of SET were 14.9 times and 17.1 times respectively at the end of March, above the average of the Asian peers of 14 and 16 times respectively.
- Dividend yield ratio of SET was 3.16 percent at the end of March, higher than Asian stock markets’ average ratio of 2.77 percent.
- A combined market capitalization of SET and mai at end-March increased by 4.8 percent to THB 17 trillion, in line with SET Index.
- Fund mobilized through IPOs during the first quarter of 2019 was THB 6.05 billion, the highest in ASEAN.
Derivatives market:
- In March, the average derivatives trading volume leapfrogged by 31 percent from the previous month to 404,814 contracts per day.
