In April 2022, the Thai capital market was plagued by a variety of factors, such as the International Monetary Fund’s 2022 revision of the global economic growth forecast and the rally of commodity prices, especially the rise in energy and food, expected by 2023 driven by the Russia-Ukraine war.
Moreover, the harsh lockdown in China to comply with its zero-correlation has raised concerns about the Chinese economic downturn, as it has exacerbated problems in the global supply chain.
Central banks in many countries were reluctant to tighten monetary policy to curb inflation and maintain the momentum of their post-Covid economic recovery.
Analysts had expected the Federal Reserve (Fed) to raise interest rates faster than expected, leading to an increase in real yields in the opposite direction of the US stock index.
Foreign investors are returning to the ASEAN market
SET senior executive vice president Sorafol Tulaysathien said foreign investors have returned their funds to the ASEAN market.
In the first four months of 2022, the inflow of capital into the Thai stock market was based on the forecast that the Thai economy would grow at a stronger pace than the developed economies.
Furthermore, analysts still expect a 12-month forward earnings per share increase of 10 percent compared to the end of 2021. However, at the end of April, the SET index closed at 1,667.44, or 1.6 percent lower than the previous month, in line with its regional counterparts, but still rose 0.6 percent from the end of 2021.
The main highlight of April
- The SET index ended April at 1,667.44 points, down 1.6 percent from the previous month, moving in the same direction as the regional peers. However, since the end of 2021, it has increased by 0.6 percent.
- In the first four months of 2022, the SET index was driven by the country’s reopening, with service, technology and resources industry groups surpassing the SET index by the end of 2021.
- In April, the average daily trading value of SET and Mai was THB 82.32 billion (approximately USD 2.40 billion), down 11.8 percent from the same period a year earlier. In the first four months of 2022, the average daily trading value was 93.24 billion THB. Retail investors dominated the trading, accounting for 43.75 per cent of the total trading value, followed by foreign investors at 41.48 per cent.
- Foreign investors had net buyers at 9.78 billion THB for the fifth month in a row in April, boosting their net purchasing position. 118.12 billion THB for the first four months of 2022.
- In April, SET had an IPO: JD Food pcl (JDF), and a company in:
Chimney’s Eye PCL (CEYE).
- The SET’s forward P / E ratio was 17.7 times – at the end of April, the Asian market average was 13.3 times higher. The historical P / E ratio was 18.3 times, higher than the Asian market average ratio of 14.3 times.
- The SET’s dividend yield ratio stood at 2.66 percent at the end of April, above the Asian stock market average of 2.51 percent.
n In April, the Thailand Futures Exchange (TFEX) recorded an average derivatives trading volume of 379,723 contracts per day, down 45.9 percent from the same period a year ago due to lower trading volume of single stock futures and SET50 index futures. However, in the first four months of 2022, derivatives trading volume averaged 577,227 contracts per day, an increase of 8.2 percent over the same period a year earlier.