SET Index posts 0.7% rise in May
The SET Index in May rose 0.7% from the previous month to close at 1,539.59 points, with gains in manufacturing, exports and commodity shares partially offset by the worsening pandemic.
Soraphol Tulayasathien, senior executive vice-president of the Stock Exchange of Thailand (SET), said foreign investors reported net buying at the beginning of June, suggesting more foreign funds may flow into the Thai bourse this month.
The last week in May, foreign investors were net buyers of 5.19 billion baht worth of shares. However, foreign investors remain net sellers worth 66.9 billion baht for the first five months.
"The prospect of a global economic recovery has boosted the Thai stock market, helping it survive during the 'sell in May' phenomenon with gains," Mr Soraphol said.
Manufacturing, tech, real estate, food and consumer stocks on both the SET and the Market for Alternative Investment (MAI) outperformed their regional counterparts last month.
However, it was only a partial recovery for the Thai bourse as tourism-related sectors, a major driver of the country's GDP, still remain in a slump.
He said two short-term external factors to monitor in the second half of the year are the US economic stimulus packages and the tapering of quantitative easing.
In addition, recovery of the tourism sector and related businesses is expected to be the mid-term driver for the Thai capital market, while environmental, social and corporate governance investments are expected to be the long-term driver.
Companies listed on the SET100 Index and the MAI have become more attractive thanks to increases in their trading value, contributing up to 35% of total trade in the first five months of the year, up from 27% in 2020.
Mr Soraphol said the share prices of mid-sized to small SET-listed companies are more volatile than those listed on the SET50 and SET100 indices.