In the second half of 2024, Thailand’s stock market has seen a resurgence of foreign investment, buoyed by several key factors. The anticipated interest rate cut by the US Federal Reserve, the recovering Thai economy, and strong financial results from listed companies are primary drivers of this renewed investor confidence.

Senior executive vice-president Soraphol Tulayasathien of the Stock Exchange of Thailand (SET) noted that rising production capacities in developing countries signal a global economic rebound. Additionally, major central banks have eased their policy rates after a period of monetary tightening, aligning with global disinflation trends.

Investors are cautiously optimistic, waiting for further clarity on government economic stimulus measures and the impact of confidence-boosting policies introduced in late June. Despite a slight dip in the SET index, new stock listings continue to attract substantial investment, with six firms joining the SET and eleven debuting on the Market for Alternative Investment in the first half of 2024.

This strategic influx of foreign funds underscores the potential for robust economic growth in Thailand, driven by improved exports, tourism, and increased government spending. The implementation of measures like the uptick rule to curb short-selling and adjustments to the lockup period for the Thai ESG fund are expected to further stabilize and enhance market performance.