Foreigners buying Thai stocks surge by 35 percent
Foreign investors are helping to power a surge in the Thai stock market, snapping up 35.5 percent more equities than last year. Meanwhile, the Foreign Business Confidence Index climbed 15 points, as the Kingdom’s prospects look positive to the global business community.
Foreign holdings in listed Thai companies now exceeds $150 billion, or 27.1 percent of the Stock Exchange of Thailand’s total capitalization. Investors from the U.S. rank fifth among foreign equities investors behind the United Kingdom, Singapore, Hong Kong and Switzerland.
After nearly two years of battling the COVID-19 pandemic, business communities in many countries are starting to recover economically from the adverse effects, caused by health measures to control the spread of the virus.
The buying spree in the equities market is a strong indicator that global investors are optimistic about Thailand’s prospects going forward. More proof of that was provided by a 15-point jump in the Foreign Business Confidence Index.
The University of the Thai Chamber of Commerce developed the index about a year ago. It sampled 66 Presidents, Vice-Presidents and Secretaries-General of the Foreign Chamber of Commerce in Thailand whose members represent 29 countries.
The survey’s questions focus on two issues: Thailand’s economic prospects and their own business confidence.
“Foreign business confidence in Thailand improved in the third quarter, mainly driven by the relaxation of lockdown measures and after the government’s announcement to reopen the country early next month that will help boost tourism and domestic consumption,” said Thanavath Phonvichai, the University’s President.
“They also feel positive that Thailand’s economy will gradually recover in the fourth quarter of this year and see better growth next year,” he added.