Tuesday, August 11, 2020

SET rises sharply as foreign investors return in droves

Jun 06. 2020
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By The Nation

The Stock Exchange of Thailand (SET) was the only index in the region to rise sharply as foreign investors spent more than Bt11 billion on Thai stocks, said Nuttachart Mekmasin, research analyst at Trinity Securities.

On Friday (June 5), SET Index rose by 24.69 points or 1.75 per cent, closing at 1,435.70, the highest in four months.

Nuttachart said that among other Asian indices, the SET rose 28.4 per cent followed by Japan’s Nikkei rising 23.2 per cent and South Korea’s KOSPI 19 per cent.

“The SET gained positive sentiment from more foreign investors returning to buy Thai stocks,” he said.

“Since the beginning of this month, foreign investors have spent more than US$189 million on Thai stocks, $237 million in Indonesia, $49 million in the Philippines, $2.249 billion in India, $1.239 billion in Taiwan and $210 million in South Korea.”

He added that SET also gained positive sentiment from the uptick rule that requires short sales to be conducted at a higher price than the previous trade, causing the short-selling value to drop below Bt1 billion per day.

“If the SET extends the uptick rule, the index may maintain a high level,” he said, adding that while the index rose sharply, the trading proportion of individual investors also rose 50 per cent.

“Stocks that pushed the index to rise were energy stocks led by PTT and PTT Exploration and Production [PTTEP], and PTT Global Chemical [PTTGC], whose price rose by 4 to 8 per cent after Opec+ decided to keep oil production low for up to three months,” he added.

Meanwhile, a stock analyst at Capital Nomura Securities said that since the end of May, foreign investors had spent up to $4.281 billion on Asian indices.

“However, the SET Index may fall as it has risen to the resistance line at 1,430 points,” the analyst said. “We advise investors to hold only 30 per cent and buy stocks that have strong basic factors every month.”

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