Industrial impasse forces largest foreign sell-off in nine months

Thailand stock market

Thailand’s stock market in November was affected by domestic negative factors including the suspension of Map Ta Phut Industrial projects and an unresolved political situation with the net selling of Bt 13 billion by foreign investors.

Thai shares fell 0.59 per cent Wednesday in a market awash with concerns over domestic politics and the global economy. The Stock Exchange of Thailand (SET) composite index lost 4.11 points to 694.71, while the blue-chip SET-50 index dropped 2.97 points to 487.39.

Dr Veerathai Santiprabhob, Chief Strategy Officer of the Stock Exchange of Thailand (SET) said foreign investors were net sellers of Bt13.2 billion of energy stocks with high market capitalisation. Foreign investors are worried about the suspension of the industrial projects at the Map Ta Phut industrial estate in Rayong by the court, waiting for clear solutions from the four-party committee set up to resolve the problem.

He said foreign investors are likely to continue offload their portfolios due to risks in the Map Ta Phut case and domestic political situation.

However, he said the net buying of foreign investors for the year was Bt42 billion.

In November, average daily trading value hit the lowest in four months, Bt18 billion per day.

“Although foreign investors sold energy stocks, they were not interested in investing in other stocks owing to differences in market capitalisation and liquidity,” he said.

The Thai stock market is still moving in the mid-range despite negative factors, compared to stock markets of neighbouring countries. Thai stock index is still positive with good liquidity, Mr Veerathai said.

The Thai stock market at the end of November rose slightly from the previous month and closed highest at 717.90 points. Economic figures in the third quarter signaled continuous economic recovery and market value in November stood at five trillion baht, a 0.67 per cent increase from the month before.

In the third quarter, the operating results of listed companies rose year-on-year but fell from the previous quarter, resulting from specific factors of natural resource companies.

Regardless of the natural resource firms, other listed companies in other business sectors grew continuously, signalling overall Thai economic recovery. (TNA)