Inflows drive index to 16-yr high
Foreign capital inflows are cited as the main reason for today's advance in the Stock Exchange of Thailand Index, which hit the 16-year high.
According to SET website, foreign net-buys today reached Bt1.181 billion. Aggregate net-buys for April were only Bt1.182 billion. So far this year, the net-buys amounted to Bt83.95 billion.
The SET Index today closed at 1,228.49 points, the highest in 16 years and 4 months.
Stock analysts expect the index to move between 1,260-1,280 points throughout this week.
The Thai bond market has also attracted huge inflows. Thai Bond Market Association Chairman Bandid Nijathaworn said that in the first quarter, foreign net investment hit Bt299 billion, including Bt49.5 billion in short-term bonds. This boosted outstanding foreign bond holding to Bt550 billion, up 30 per cent from end-2011. The value accounted for about 7 per cent of all outstanding bonds.
"Foreign investment has continued. Due to global risk factors, foreign and local investors invest more in short-term bonds.
"The growth momentum should continue in the second half. We expect new bond issuance worth Bt350-Bt400 billion this year," Bandid said.
