The Stock Exchange of Thailand (SET) Index gained 6.7 per cent in July from the previous month to 1,701.79 points, in line with regional peers. It was Asean best performing bourse of the month.
The average daily trading value of SET and Market for Alternative Investment (MAI) in July was Bt52.05 billion (US$ 1.58 billion), a 25.5 per cent year-on-year increase, SET President Pakorn Peetathawatchai said yesterday.
He added that SET Index in July moved in the same direction as most of the regional stock markets and it was the top gainer in the region. Local retail and local institutional investors were net buyers, driven by Thai shares' lower forward P/E ratio than most of Asean stocks, positive signs for SET and Mai-listed firms’ earnings in the second quarter as well as the rises in oil prices. However, trade conflicts and monetary policy adjustment of major economies still pose threats to the global investment in the capital markets.
In July, foreign investors pulled out Bt10.62 billion from the Thai bourse, in line with the Thai bond market, where foreign investors were also net sellers.
Forward P/E ratio of SET was 15.65 times at the end of July, while historical P/E ratio was 17.35 times, higher than the average of its Asian stock markets at 13.93 times and 15.30 times, respectively.
Dividend yield ratio of SET was 3.05 per cent at end-July, above Asian stock markets' average ratio of 2.79 per cent.
A combined market capitalisation of SET and mai at end-July amounted to Bt17.5 trillion, down 2.5 per cent from the end of 2017, moving in the same direction as SET Index.
The average daily trading value of SET and mai in July was Bt 52.05 billion, up 25.5 per cent from a year earlier.