SET offers new guidelines for investing in the new normal

The guidelines are:

Increasing fundraising opportunities: SET will launch a third stock market to help small and medium-sized businesses (SMEs) and start-ups raise funds. Foreign companies will also be helped to raise funds via the Thai stock market.

Developing products to meet investors' demands: SET will offer more overseas investment opportunities to help investors diversify their investments.

Transitioning to the new normal era: It is necessary for SET to adapt so it is in line with the new normal, because now investors are paying more attention to stocks related to the environment, social causes and good governance that generate good returns.

“The stock market is an important factor that can help boost the country’s gross domestic product [GDP] as it accounts for 31 per cent of the Thai capital market,” Pakorn said.

“However, the Thai capital market has weak points, as the number of SMEs and products related to overseas investment is still low, so the SET and the government are working together to solve these issues.”

Pakorn said the Thai capital market is recovering in a K-shape after Covid-19 emerged at the beginning of the year.

"The Thai capital market has the opportunity to expand further as economies in Asia are likely to recover faster compared to Europe, especially in countries like China, India, Japan and Indonesia,” he said.

However, he added that investors should study each company's moves to adjust in line with the new normal before they invest.