Foreigners invested Bt15.8 billion in Thai shares in October
The Stock Exchange of Thailand (SET) reported on Friday (November 5) that the net purchase of Thai shares by foreign investors in October is at 15.88 billion baht, rising for three consecutive months and is the highest net purchase in the year 2021. Meanwhile, foreign investors’ accumulated net sales as of October 29 is at 60.81 billion baht, significantly lower than that of the pervious year which was recorded at 264.38 billion baht.
Aphichart Phubanjerdkul, senior strategic analyst at Tisco Securities Ltd has said that it is estimated that foreigners will continue to buy Thai shares in November, thanks to the country’s reopening and economic recovery in several sectors. “However, the share purchasing in December will start to slow down due to the long holiday season in foreign countries. We might start seeing this trend as early as late November,” he added.
Aphichart further added that toward year end foreign investors are likely to invest more in the Super Savings Fund (SSF) and Retirement Mutual Fund (RMF) as they expect to gain tax benefits from these funds. “However, by early 2022 investors will start selling Long Term Equity Fund (LTF) as it has limited holding period,” he said.
“Positive factors that will help bring in foreign investment are mostly external ones, especially the monetary policy in foreign countries,” said Aphichart. “It is estimated that in the next six months there will still be no increasing of policy rate, while the overall liquidity will still be high amid economic growth.”
“As for domestic outlook, we believe that Thai economy will continue to recover. But we need to closely monitor how the government will use the borrowed 500 billion baht as economic stimulants,” he added.
