Average trading value per day in Thailand's two stock indices saw a 27.8% year-on-year rise in June, a 30-month high, as retail investors returned to capture capital gains from lower share valuation because of the pandemic.
The average trading value per day also rose by 38.2% year-on-year during the first half to 68.6 billion baht.
Retail investors were instrumental, marking the fourth successive month of dominating overall trade, accounting for 48.8% of total trade in June, up from 33.7% at year-end 2019, said SET senior executive vice-president Soraphol Tulayasathien.
Foreign investors made up 32.5% of total trade last month, followed by institutional investors at 9.35% and brokerage firms at 9.42%.
Mr Soraphol said more than 100,000 new retail trading accounts entered the stock market, with most younger investors accessing the market via online trading.
"These new investors [seem to] prefer investing in fundamental stocks that have share prices below the fundamental value," he said.
The stock market also started to see increasing confidence as foreign investors slowed their net selling of local equities, while shifting direction to become net buyers in the Thai bond market, said Mr Soraphol.
Foreign investors were net sellers of 22.4 billion baht worth of local shares in June, trending the same as other regional markets. During the first half of 2020, they were net sellers of 216 billion baht.
The forward and historical price-to-earnings ratios of the SET were 20.5 times and 18.7 times, respectively, at the end of June, exceeding the average ratio of Asian markets at 15.5 times and 16.0 times, respectively.
SET-listed companies have resumed their fundraising activities in the primary market and will start to list their IPOs on the bourse starting this month, he said.
SET-listed Sri Trang Gloves Thailand (STGT) made its trading debut last Thursday, with shares gaining 78%, supported by rising demand for rubber gloves amid the pandemic.
The world's third largest rubber glove maker is the third IPO to list on the Thai bourse this year, following Yggdrazil Group and Central Retail Corporation on the Market for Alternative Investment and Stock Exchange of Thailand in early January and late February, respectively.
SET president Pakorn Peetathawatchai said the IPO market is expected to become active in the second half as many companies prepare to raise funds in the primary market. Those that have products in demand as a result of new trends are likely to garner substantial interest from investors, said Mr Pakorn.
