BANGKOK: The Thai stock market experienced a 2.6% decline in November 2024, with the SET Index closing at 1,427.54 points. This decrease aligns with regional stock market trends, influenced by global economic uncertainties following Donald Trump’s victory in the US presidential election. Meanwhile, the Futures Exchange Market (TFEX) saw a 4.2% drop in average daily trading volume.
According to Thai News Agency, the Stock Exchange of Thailand reported that despite a rise in the US stock market and Bitcoin, concerns are mounting over potential trade policy changes under the new US administration. Analysts are wary of the impact of possible harsh tariffs against China, which could shift investment towards safer assets. These uncertainties could affect inflation rates, potentially delaying the US Federal Reserve’s interest rate cuts, thereby increasing volatility in global markets over the next 1-2 years.
Mr. Soraphol Tulayasathien, Deputy Managing Director and Head of Corporate Strategy at SET, noted that the
Thai economy showed stronger GDP growth during Trump’s first term in 2017 compared to now. However, GDP growth in Q3/2024 expanded by 3.0%, with a cumulative nine-month growth of 2.3%, surpassing analyst expectations. The National Economic and Social Development Board adjusted the Thai economic outlook for 2024 to 2.6%, driven by higher exports, tourism, and government investment.
Revenue for listed companies increased in the first nine months of 2024, attributed to a rebound in tourism, despite decreased net profits from oil and petrochemical sectors due to lower oil prices and refining margins.
From the start of 2024 to the end of November, the SET Index saw a modest increase of 0.8%. The technology sector was the sole outperformer compared to the end of 2023. The average daily trading value in SET and mai fell 3.4% to 44,256 million baht from November 2023, and by 13.5% to 47,045 million baht for the first 11 months of 2024 compared to the previous year. Notably, domestic institutional investors increase
d their trading value to over 10% of total trading for two consecutive months. New listings included Specialty Natural Products Public Company Limited (SNPS) on SET, and MPJ Logistics Public Company Limited (MPJ) and Interroyal Engineering Public Company Limited (IROYAL) on mai.
The forward P/E ratio of the Stock Exchange of Thailand at the end of November 2024 was 16.3 times, above the Asian average of 12.6 times, with a historical P/E of 19.3 times, also higher than the regional average of 14.3 times. The dividend yield stood at 3.34%, exceeding the Asian average of 3.10%.
In the futures market, TFEX’s average daily trading volume decreased to 487,638 contracts, mainly due to a decline in Single Stock Futures. Over the first 11 months of 2024, the average daily trading volume was 479,145 contracts, a 10.7% decrease from the same period last year, influenced by reduced activity in Single Stock Futures and SET50 Index Futures.