Profits soar for Thailand’s listed companies

During the COVID-19 pandemic economic recovery, Thailand’s listed companies have been healthier than ever, posting a year-on-year increase in profits of 137 percent during the first quarter of 2021.

The trend mirrors those in other countries. The U.S. stock market has achieved record levels during the past year, even as the American economy suffered because of the pandemic. Analysts generally say that the market increases are based on how investors view the future instead of current conditions.

The Thai market’s overall figures were driven by solid performances by companies in the energy sector. Energy firms account for 35 to 40 percent of the total market capitalization of the Stock Exchange of Thailand.

The total profits were also 45 percent higher than those of the previous quarter. The results exceeded the consensus forecast of analysts by 37 percent, according to Asia Plus Securities.

Therdsak Thaveeteeratham, Executive Vice-President of Asia Plus Securities, said that his firm estimated that listed companies would record a net profit of $25.5 billion in 2021, up from $13.3 billion the previous year. The market earning yield gap will stand at 4.1 percent, higher than the historical average of 3.9 percent.

Analysts said the energy sector recorded excellent profits because of the prospects of an accelerating global vaccine rollout in the second quarter and a worldwide economic recovery. Those factors have driven commodity prices to keep rising since the beginning of this year.

Therdsak that while the Thai market should remain strong, the Kingdom’s economic recovery will depend upon a smooth rollout of vaccines, which is just beginning.