Thai investors buying more foreign stocks

Thais are increasingly becoming global investors with locals buying more stocks and funds overseas, and the investments from American companies are among those preferred.

Revenues from global stock trading through local brokers rose 200 percent during the first six months of 2021 compared to the same period last year, according to Thailand’s Securities and Exchange Commission. The stocks most popular with Thais were of companies from the U.S., Europe and Southeast Asia, a securities executive said.

Also, the net asset value of Thai foreign investment funds rose to roughly $30 billion in April, a rise of 39.6 percent since the beginning of the year.

“Investment in foreign securities is an option that will help investors diversify risk and find high returns,” said Thongmakut Thongyai, CEO of Krungthai Zmico Securities, a brokerage based in Bangkok that ranks among the top three in Thailand for volume of foreign stock trades.

Paiboon Nalinthrangkurn, Chairman of the Federation of Thai Capital Market Organizations, said that Thais would do well to invest in the U.S., European and Asian stock markets this year. All those regions are recovering healthwise and economically from the coronavirus pandemic. Economies in the region are still striving.

The Stock of Thailand has been volatile in 2021 because of uncertainty about the pandemic. Nonetheless, the net asset value of the Thai mutual fund industry was up 4.8 percent at the end of June compared to the end of December 2020.