Foreign investors turn net-buyers of Thai shares

business June 03, 2014 00:00

By The Nation

Foreign investment has returned to the Stock Exchange of Thailand, as foreign investors have bought Thai shares for Bt5.78 billion net in the first two days of this week.

They were net sellers in May particularly in the past two weeks after the junta took the administrative control, with sale outpacing purchases by over Bt33 billion.
In the past two weeks, the Stock Exchange of Thailand index survived sell-offs thanks to individual investors' hopes that the junta would stabilise the political situation and the economy after the months-long protests. 
The index today gained another 13.30 points or 0.92 per cent, to end at 1,454.24 points on brisk turnover of Bt64.95 billion. 
The Thai bourse today joined most of other Asian markets' rally, taking their cue from another record close on Wall Street following improved manufacturing data in the United States and China.
Markets have taken heart from improved manufacturing output in the world's two largest economies.
On Tuesday HSBC said manufacturing activity in China improved in May. The British banking giant's purchasing managers index (PMI), which tracks activity in the nation's factories and workshops, came in at 49.4 in May. 
The figure was lower than a preliminary reading of 49.7 but improved from 48.1 in April and the highest reading since January's 49.5.
PMI data is a closely watched indicator of the health of a country's economy, and a reading above 50 indicates growth.