SET market report for August 2021

Thursday 09 September 2021 15:37
In late August, there were apparently some brighter sides since the new wave of COVID-19 via the Delta variant tended to subside in Thailand. The numbers of daily new infected cases were declining in many areas nationwide. In addition, SET's Thailand Focus 2021 event helped bolster investors' confidence. Moreover, the annual economic policy symposium in Jackson Hole, Wyoming (August 26, 2021), the Federal Reserve resolved to maintain quantitative easing policy, as such bringing back investors' positive sentiment. There were signs of foreign investors moving their capital back to risky assets and stock exchanges in ASEAN, resulting in baht appreciation against the US dollar at THB 32.34.
SET market report for August 2021

SET Senior Executive Vice President Soraphol Tulayasathien said that at end-August, the SET Index closed at 1,638.75, rising by 7.7 percent from the previous month. For the past eight months to August, the benchmark index gained 13.1 percent, outpacing other regional peers. Comparing with year-end 2020, the industry groups that outperformed the SET Index were Industrials, Technology, Agro & Food Industry, and Services.

Key highlights for August

  • The SET Index ended August at 1,638.75 points, a 7.7 percent gain from end-July. For the first eight months of 2021, the SET Index recorded a 13.1 percent increase from year-end 2020, outperforming the regional peer average.
  • In August, several industry groups were in an uptrend, with Industrials, Technology, Agro & Food Industry and Services industry groups outperforming the SET Index comparing with year-end 2020.
  • The average daily trading value of SET and mai in August amounted to THB 92.59 billion (approx. USD 2.82 billion), up 63.8 percent from the same period a year earlier. The daily trading value for the first eight months averaged THB 95.89 billion.
  • Foreign investors were net buyers (for the first month in 2021) with a net THB 5.58 billion in August. Foreign investors were net sellers of THB 89.97 billion for the January-August period, while local investors bought a net THB 102.61 billion. Significantly, local investors have continuously dominated the trading value since the COVID-19 pandemic began in February 2020.
  • In August, IPO activities continued with one new company and one real estate investment trust listings on SET. During the first eight months of this year, the fundraising value via IPOs listed on the Thai bourse was the higher than any other ASEAN markets.
  • SET's forward and historical P/E ratios at end-August were 19.3 times and 20.2 times respectively, exceeding the average ratios of Asian markets at 14.7 times and 18.2 times respectively.
  • The dividend yield ratio of SET was 2.38 percent at end-August, above Asian stock markets' average ratio of 2.35 percent.

Derivatives market

  • In August, the derivatives trading volume averaged 473,152 contracts per day, an 11.8 percent increase from end-July. During the first eight months of 2021, the average daily trading volume was 533,152 contracts, a 13.4 percent rise from the same period a year earlier mainly driven by trading in Single Stock Futures, Gold online futures and USD Futures.

Source: SET Corporate Communications

SET market report for August 2021