Thai stock market rebounds on foreign inflows in Sept

The first 10 days of September saw foreign investors make a total net purchase of 19.7 billion baht. While the overall foreign net sell for the year remains at 105.0 billion baht, the recent influx of foreign capital is seen as a promising sign.

SET president Pakorn Peetathawatchai attributed the upturn to increased investor confidence following recent political developments.
Other contributing factors were the influx of tourists and increased corporate profits, he said.

Foreign institutions project the SET Index will rise to 1,500-1,550 points this year, up almost 10% from its Wednesday lunchtime level of 1,411.

Positive sentiment is also being driven by the government's Vayupak One Fund, which is attracting retail investors due to its relatively low risk and potential for returns. This fund has seen a significant influx of capital in recent weeks, reversing a trend of net selling over the past three years.

However, the market remains susceptible to external factors, particularly the US Federal Reserve's interest rate decisions. Excessive interest rate cuts could pose a risk to the Thai stock market.

Meanwhile, the SET is focusing on expanding its investor base, both domestically and internationally.
 

As Pakorn prepares to step down as SET president, he emphasised the need for market integrity and transparency through coordinated efforts of regulators, listed companies, auditors, brokers, and funds.

The SET Index rose to 1,359.07 points in August, up 2.9% from a month earlier. The rise was driven by gains in the technology, consumer goods, and agriculture and food industry sectors.

Thai listed companies have also signalled confidence in the market with a spree of share buybacks, helping to stimulate demand for Thai stocks.