Negative sentiment in US, EU hits SET Q3
The Stock Exchange of Thailand was upbeat early in the third quarter, supported by an improving domestic political situation. However, concerns about the negative spillover of the slowdown in the United States and Europe hit investment sentiment in August
The average daily-trading volume of the SET and the Market for Alternative Investment (MAI) fell 9.01 per cent to Bt32.88 billion (US$1.07 billion) in the third quarter year on year. The trading volume of derivatives reached 61,616 contracts per day, the highest since the Thailand Future Exchange was established in 2006.
The market capitalisation of the SET was at Bt7.50 trillion, down 9.99 per cent from the end of 2010 and down 11.87 per cent from the second quarter of this year.
Hit by fears of US and European economic slowdowns, the SET Index fell 11.29 per cent from the end of last year. Foreign investors were net sellers for a total of Bt35.62 billion in the first nine months.
Market capitalisation was at Bt7.50 trillion (US$244 billion), down 11.87 per cent from end-June and down 9.99 per cent from end-2010. Market valuation of the MAI was at Bt66.24 billion, down 16.53 per cent from the previous quarter and down 17.54 per cent from the end of 2010.
Average daily trading volume was at Bt32.88 billion, up 8.33 per cent from the previous quarter, but down 9.01 per cent from a year earlier. In the first nine months, trading volume increased 18.95 per cent from the same period of last year, to Bt31.53 billion.
The forward price-to-earnings ratio for the SET was at 10.35 times, down from 11.98 at the end of the second quarter.
Dividend yields of the SET and the MAI were at 4.61 per cent and 3.66 per cent, respectively, as at end-September.
Foreign investors sold a net Bt16.54 billion in September. They were net sellers worth Bt35.62 billion in the first nine months. Foreign investors accounted for 22.95 per cent of total trading volume in the first nine months, up from 18.40 per cent in 2010.
Listed companies raised Bt3.65 billion in September, increasing the total volume of fund-raising to Bt8.41 billion million in the third quarter.
The average daily trading volume hit an all-time high at 61,616 contracts in the third quarter, pushed up by volumes of 50-baht gold futures, 10-baht gold futures, and SET50 Index futures.
In September, the average daily trading volume rose to 63,791 contracts, helped by trading of SET50 Index futures, whose volume increased 25.51 per cent to 27,030 contracts per day.
Trading in the night session accounted for 37.42 per cent of the total trading volume of gold and silver futures during June 20 to September 30.
