Bangkok: The Stock Exchange of Thailand (SET) Index experienced a significant rise in July 2025, closing the month with a 14.0% increase to reach 1,242.35 points. This substantial growth, which outpaced many regional stock markets, was attributed to a range of positive developments.
According to Thai News Agency, the return of foreign investors to net buying was a key driver, with a net purchase of 16.121 billion baht marking the first such occurrence since September 2024. This renewed interest was supported by several factors, including favorable tariff developments involving US goods between Indonesia and Vietnam, suggesting potential for a similar trade agreement between Thailand and the US. Additionally, the Fiscal Policy Office (FPO) raised its 2025 GDP growth forecast to 2.2%, further bolstering investor confidence. The weakening US dollar led to increased capital flows into emerging markets like Thailand, contributing to the upward trend of the SET Index.
Mr. Soraphol Tulayasathien, Senior Executive Vice President and Head of Corporate Strategy at the Stock Exchange of Thailand, highlighted that foreign investors were net buyers on 14 out of 21 trading days in July 2025. Despite a 5.0% decrease in the average daily trading value during the first seven months of 2025 compared to the previous year, foreign investors accounted for the highest trading value at 50.68% in July.
The SET Index, however, showed an 11.3% decrease from the beginning of the year to July 31, 2025. Industry groups such as Technology, Financial, Resources, and Industrials outperformed the SET Index compared to the end of 2024. The combined average daily trading value of the SET and MAI increased by 12.1% from July 2024 to THB 42.624 billion.
Mr. Asadej Kongsiri, Director and Managing Director of the Stock Exchange of Thailand, noted that the market outlook is improving, with factors like the return of fund flows and the resumption of trading in Thai Airways International Public Company Limited (THAI) shares, which have a market cap exceeding 300 billion baht. However, the performance of listed companies in the second quarter and MSCI's investment weighting remain crucial for sustained growth.
The Thai stock market's forward P/E ratio at the end of July was 13.8, surpassing the Asian stock market average of 13.0, while the historical P/E ratio was 14.3, below the Asian average of 14.8. The dividend yield at the end of July 2025 stood at 3.95%, higher than the Asian average of 3.17%.
In the TFEX futures market, July 2025 saw a decline in average daily trading volume to 355,290 contracts, a 19.8% decrease from the previous month. This decline was primarily due to reduced activity in Single Stock Futures and SET50 Index Futures. The average daily trading volume for 2025 was 425,984 contracts, marking an 11.9% decrease compared to the same period last year.