In the intricate dance of global finance, the Stock Exchange of Thailand (SET) emerges as a robust player. The relentless rate hikes by the Federal Reserve to curb inflation and the looming specter of recession have rattled global markets, yet the SET Index has demonstrated remarkable resilience, closing 2022 with gains while its counterparts faltered.
Senior Executive Vice President of SET, Soraphol Tulayasathien, attributes this success to significant foreign fund inflows, drawn by Thailand’s steady economic recovery and the phased reopening of international borders. In 2022, foreign investors injected a record THB 196.89 billion into the Thai market, marking the highest inflow since 2012. This influx has been pivotal, propelling the SET Index to rise by 2.0 percent in December alone, outperforming regional averages.
Industries that thrived on the country’s reopening—Services, Technology, Resources, and Property & Construction—bolstered the SET Index. Despite a decline in average daily trading value to THB 56.18 billion, the Thai bourse maintained its status as the most liquid market in ASEAN. It also stood as the fourth-largest IPO venue in Asia, with THB 127.84 billion in offerings.
The SET’s forward P/E ratio at year-end was 16.1 times, surpassing the Asian average of 12.2 times, underscoring investor confidence in Thailand’s market stability and growth potential. However, the dividend yield ratio was slightly below the regional average, indicating areas for improvement.
In the derivatives market, the Thailand Futures Exchange (TFEX) saw a notable increase in trading volumes, particularly in SET50 Index Futures and Single Stock Futures, reflecting robust investor activity and confidence.
Thailand’s stock market success in 2022 underscores the importance of strategic positioning and resilience in the face of global economic challenges. As the nation continues to navigate the complexities of international finance, its ability to attract and sustain foreign investment will be crucial in maintaining its upward trajectory.