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SET rises sharply as foreign investors return in droves

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SET rises sharply as foreign investors return in droves

By The Nation

 

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The Stock Exchange of Thailand (SET) was the only index in the region to rise sharply as foreign investors spent more than Bt11 billion on Thai stocks, said Nuttachart Mekmasin, research analyst at Trinity Securities.

 

 

On Friday (June 5), SET Index rose by 24.69 points or 1.75 per cent, closing at 1,435.70, the highest in four months.

 

Nuttachart said that among other Asian indices, the SET rose 28.4 per cent followed by Japan’s Nikkei rising 23.2 per cent and South Korea’s KOSPI 19 per cent.

 

“The SET gained positive sentiment from more foreign investors returning to buy Thai stocks,” he said.

 

“Since the beginning of this month, foreign investors have spent more than US$189 million on Thai stocks, $237 million in Indonesia, $49 million in the Philippines, $2.249 billion in India, $1.239 billion in Taiwan and $210 million in South Korea.”

 

He added that SET also gained positive sentiment from the uptick rule that requires short sales to be conducted at a higher price than the previous trade, causing the short-selling value to drop below Bt1 billion per day.

 

“If the SET extends the uptick rule, the index may maintain a high level,” he said, adding that while the index rose sharply, the trading proportion of individual investors also rose 50 per cent.

“Stocks that pushed the index to rise were energy stocks led by PTT and PTT Exploration and Production [PTTEP], and PTT Global Chemical [PTTGC], whose price rose by 4 to 8 per cent after Opec+ decided to keep oil production low for up to three months,” he added.

 

Meanwhile, a stock analyst at Capital Nomura Securities said that since the end of May, foreign investors had spent up to $4.281 billion on Asian indices.

 

“However, the SET Index may fall as it has risen to the resistance line at 1,430 points,” the analyst said. “We advise investors to hold only 30 per cent and buy stocks that have strong basic factors every month.”

 

Source: https://www.nationthailand.com/business/30389118

 

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-- © Copyright The Nation Thailand 2020-06-06
 
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"Since the beginning of this month, foreign investors have spent more than US$189 million on Thai stocks".

 

Yet another reason why THB remains strong, that's a lot of FDI in a short period of time.

 

That's USD 189 bill. of Foreign Direct Investment, much of it in Dollars I imagine, that has purchased Thai stocks....and posters were trying to tell us that the SET would fall by 10% on the news that the Thai economy was in worse shape than previously thought!!! 

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14% down the last year, has performed poorly compared to other countries (Nikkei +9%, S&P +10%, Shanghai +2%)

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I absolutely agree when it comes to stock markets, but we're talking about Foreign Direct Investment. Foreign investment money has looked at its options and 189 billion Dollars of it has said they have confidence in the recovery of the Thai economy. All of which runs counter to many of the views expressed by posters in other threads who have suggested that the Thai economy is in a downwards spiral and about to crash completely.

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“ the stock market can remain irrational as long as you can remain solvent “ Keynes
Going by past bust ups, markets rose after dumps, only to crash below their previous lows . And history always repeats. 
Folks think the economy will go back to normal even when this pandemic is still current. 25% or the workforce now unemployed. Billions borrowed. A few tech stocks leading the charge. Be cautious. Smart money is on the sidelines

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I noticed foreign investers pouring in starting a week ago Friday and I've been totally baffled why. The only events at the time were the US's ambasadors support speech and a trillion baht ready to hit the press. It's the only motivation I could see, but not nearly enough to nudge me in. Just my opinion, but I see these markets way over inflated and debt seems to be the new gold.

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20 minutes ago, r136dg said:

I noticed foreign investers pouring in starting a week ago Friday and I've been totally baffled why. The only events at the time were the US's ambasadors support speech and a trillion baht ready to hit the press. It's the only motivation I could see, but not nearly enough to nudge me in. Just my opinion, but I see these markets way over inflated and debt seems to be the new gold.

That money is pouring into the region, not just into Thailand. But in Thailand's case, debt is very low, that's one of the reason the money's coming here.

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7 hours ago, rooster59 said:

(SET) was the only index in the region to rise sharply

but

 

7 hours ago, rooster59 said:

foreign investors have spent more than US$189 million on Thai stocks, $237 million in Indonesia, $49 million in the Philippines, $2.249 billion in India, $1.239 billion in Taiwan and $210 million in South Korea.”

so more was spent in Indonesia,India,Taiwan and south Korea  but Thailand was the only one to rise sharply ?

🤔

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