Business executives have expressed optimism that the underperforming Thai stock market could see a significant improvement in the second half of 2025, based on their hopes that the government's stimulus measures have been effectively implemented to address the country's economic weakness.
Following a sharp contraction over the past two years, the Stock Exchange of Thailand (SET) has dropped by 16% so far this year, making it the second worst performer globally after the Lebanese stock exchange, which has fallen by 25% year-to-date, according to the Investment Analysts Association (IAA).
"Thai equities are very cheap in terms of valuation for the time being, particularly when compared to what we saw three years ago. That is the top selling point of the SET that makes the bourse appealing to investors," said IAA chairman Paiboon Nalinthrangkurn, who is also chief executive of Tisco Securities.
Another factor that could make Thai stocks shine in the rest of 2025 is the effectiveness of the government's economic stimulus.
"This government is the first administration in 10 years that realises the importance of the capital market in boosting the overall economy," Mr Paiboon told a forum hosted by Daily News yesterday.
The Pheu Thai-led government has introduced measures to boost the SET, along with other stimuluses.
"We hope to see a clear timeline of the measures announced and practical implementation of those initiatives. That could make the Thai stock market more appealing in the eyes of international investors," he noted.
In addition, the government and concerned agencies should attract "new economy" industries to Thailand, complementing old economy companies that have seen slow growth recently.
Speaking at the same event, SET president Asadej Kongsiri said investors want to see the government increase spending on infrastructure projects like high-speed trains.
Private investments have also fallen over the past two to three years in line with economic growth, he said.
SET's role is to facilitate investments, including overseas investments through depository receipts (DRs). More than 100 DRs are now available to serve fractional investments by Thai investors, allowing them to invest in overseas shares in baht, Mr Asadej added.
Rakpong Chaisuparakul, senior vice-president at KGI Securities (Thailand), said the SET Index could lack support from a large-cap sector like energy, as crude oil prices may be capped ahead of the next OPEC+ meeting in early June.
Late last week there were reports that the cartel may have a super-sized output hike at its June 1 meeting.
Provided by SyndiGate Media Inc. ( Syndigate.info ).
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