Thai stocks see net foreign purchases for first time in 27 days
Monday saw foreign investors make net purchases in the Thai stock market for the first time in 27 trading days that saw mass sell-offs totalling 51.63 billion baht from May 21 to June 28.
However, the Stock Exchange of Thailand (SET) closed below the psychological support level of 1,300 points at 1,299.35 on Monday – down 0.12% on Friday’s close of 1,300.96. Transactions totalled 29.73 billion baht. The drop came after the uptick rule on short-selling was introduced to curb price volatility with a mandate that stocks can only be short-sold at a price higher than their last trade.
On Monday net purchases totalled 337.97 million baht for foreign investors and 6.84 million baht for locals.
However, local institutions and proprietary traders made net sales of 230.14 million baht and 114.67 million baht, respectively.
Asia Plus Securities is bullish about the SET in the second half of this year, saying stocks will gain positive sentiment from Thailand’s economic recovery, new trading rules and new funds.
Pi Securities CEO Nattapon Chansivanon also expects the stock market to recover in the second half as stimulus measures kick in.
“If the Thai government kicks off economic stimulus measures in the second half of this year, the index’s resistance will be 1,350-1,400 points,” he said.
