Srettha's visit to UNGA78 expected to boost Thai stocks

Foreign investors remained net sellers of 2.66 billion baht in stocks, while institutional investors were net buyers of 204.90 million baht, and individual investors in the country were net buyers of 2.53 billion baht.

Sukit Udomsirikul, managing director of Innovest X Securities research division, revealed that the Thai stock index yesterday followed the regional stock markets as funds flowed out of the emerging markets, including the Thai stock market, and went back to the United States influenced by the Federal Reserve signalling another interest rate hike this year.

There are still no new factors supporting the market, and questions remain about whether the new government policies will be implemented. This has kept trading volumes relatively light, reflecting that confidence that has yet to return. However, it is expected that confidence could recover towards the end of the year with the index expected to rise from 1,500 points to 1,600 points driven by the buying power of domestic investors.

Prime Minister Srettha Thavisin's participation in the 78th session of the UN General Assembly (UNGA78) in New York and his announcement of Thailand's policy direction that supports trade and investment with foreign countries could provide a much-needed boost. It is believed that Thailand has the potential to attract medium and long-term foreign investors, particularly in industries related to EEC (Eastern Economic Corridor) and ESG (environmental, social and governance) that have gained significant interest from large foreign funds.

It is expected that economic activities resulting from investment policies will be visible in the first quarter of 2024, and the government's various economic stimulus measures will help Thailand's economy recover by 1% next year, expanding to 4.1% from the previous estimate of 3%. The Thai economy is currently projected to grow by 2.7% this year.