SET Market Report For November 2020

Stock indices across the globe rebounded significantly in November due to the U.S. 2020 election win by the Democrat Party, whose policy gearing toward promoting global trade cooperation, triggering stock market analysts to anticipate sooner-than-expected recovery of global economy and commodities prices. Notably, positive developments of Covid-19 vaccine conducted by leading pharmaceutical firms have accelerated the rebound.

SET Senior Executive Vice President Soraphol Tulayasathien said SET Index at end-November rose 17.85 percent from the previous month, the biggest monthly percentage gain in 2020, to close at 1,408.31 points, faring better than other Asian exchanges. The SET50 and SET100 securities in Energy & Utilities, Petrochemicals & Chemicals, and Banking sectors outperformed SET Index, reflecting their strong fundamentals, while attractive valuation was another factor prompting buying spree particularly from foreign investors. 

Key highlights for November

• SET Index at end-November surged 17.85 percent from the previous month, marking the biggest monthly gain in 2020 and outpacing other Asian peers, to close at 1,408.31 points. Large-cap securities (listed in SET50 and SET100) in Energy & Utilities, Petrochemicals & Chemicals, and Banking sectors surpassed SET Index.
• Comparing with 2019 year-end performance, many industry groups edged out SET Index, especially those related to exports to overseas such as Agro & Food Industry, Technology, Consumer Products and Industrials industry groups.                                                                                                                                                                   
• The average daily trading value by month of SET and mai in November hit the record high at THB 90.08 billion, as a result during the first 11 months of this year, the average daily trading value expanded to THB 65.92 billion, or a 22.8 percent increase from a year earlier.                                                                               
• In November, foreign investors resumed as net buyers for the first time in 16 months. Their net buy of THB 32.51 billion (USD 1.08 billion) notched up as the highest fund inflow among ASEAN countries. During Jan-Nov period, foreign investors’ net sales lowered to THB 265 billion from THB 298 billion a month earlier.
• The IPO launch activities continued to be active in November with 4 new listings on SET the other 2 IPOs on mai. During the first 11 months, total fundraising value via IPO listed on the Thai bourse was the highest among ASEAN exchanges.
• Forward and historical P/E ratios of SET were 26.3 times and 24.0 times, respectively at end-November, above the average ratio of Asian markets at 18.5 times and 22.2 times respectively.
• Dividend yield ratio of SET was 3.0 percent at end-November, comparatively higher than Asian stock markets' average ratio of 2.50 percent.

Derivatives market

• In November, the average derivatives trading volume was the highest in 7 months, soaring 66.7 percent from the previous month to 621,620 contracts per day, mainly accelerated by trading of SET50 Index Futures and Single Stock Futures. During the first 11 months of 2020, the average daily trading volume amounted to 472,363 contracts, a 12.9 percent increase from the same period a year earlier, driven by higher trading volume of SET50 Index Futures, Gold Online Futures and Currency Futures.