SET market report for June 2018

Stocks and Financial Services Press Releases Monday July 9, 2018 14:07
Bangkok--9 Jul--SET

The Stock Exchange of Thailand (SET) Index at the end of June decreased nine percent from end-2017 and 7.6 percent from the previous month to 1,595.58 points, resulting in lower Forward P/E ratio at 14.57 times. This movement was in similar direction to other stock exchanges in the region. The average daily trading value of SET and Market for Alternative Investment (mai) in June was THB 57.39 billion (USD 1.74 billion), a 34.3 percent increase from a year earlier.

For the first half of 2018, foreign investors sold a net THB 179.84 billion of Thai shares. Value of their holding slightly declined from approximate value of THB 4.85 trillion, accounting for 29.73 percent of the total market capitalization, compared to 30.84 at the end of 2017.

SET President Pakorn Peetathawatchai said that SET Index declined in the same direction as the global market, causing the forward P/E ratio to reduce to 14.57 times, affected by concerns over trade conflicts and monetary policy maneuvers of the US central bank. However, the Thai economy still looked promising, driven by internal factors including the government's accelerated investment and the improving private investment.

Key highlights for June
Securities market:
  • In June, foreign investors sold a net THB 48.7 billion of Thai shares, in line with most regional stock markets and the Thai bond market, where foreign investors were also net sellers in June.
  • For the first half of 2018, foreign investors sold a net THB 179.84 billion of Thai shares. At the end of June, foreign investors held Thai shares worth a combined approx. THB 4.85 trillion, representing 29.73 percent of the total market capitalization, slightly decline from 30.84 at the end of 2017.
  • SET Index ended June at 1,595.58 points, a nine percent drop from end-2017. However, indices of Resources, Services and Industrials sectors, in descending order fell at a slower pace than SET Index.
  • Forward P/E ratio of SET was 14.57 times at end-June while historical P/E ratio was 16.24 times, higher than the average of Asian stock markets at 13.70 times and 15.03 times, respectively.
  • Dividend yield ratio of SET was 3.23 percent at end-June, above Asian stock markets' average ratio of 2.83 percent.
  • A combined market capitalization of SET and mai at the end of June was THB 16.4 trillion, down 8.7 percent from the end of 2017 in line with SET Index.
  • The average daily trading value of SET and mai in June was at THB 57.39 billion, up 34.3 percent compared to the same period a year earlier.
Derivatives market: