Political changes in the country should not affect investments in the Thai stock market as much as the ongoing economic recovery and the substantial increase in net profit for listed companies this year, according to the Stock Exchange of Thailand (SET).
Speaking at Thailand Focus 2022, the SET's annual investment forum, bourse president Pakorn Peethathawatchai said the Thai economy will continue to recover well in the second half of 2022 and capital continues to flow into the Thai bourse, amounting to 180 billion baht year-to-date.
Thailand has continued to invest in infrastructure, especially transport, which is a strength that makes the economy grow and supports private business expansion to Greater Bangkok and provincial areas, said Mr Pakorn.
"This is a good fundamental for the Thai economy to continue to grow as the Covid-19 situation has eased," he said.
"Tourism and hospitality businesses are on the recovery path, while the food and fashion sectors are starting to recover."
The change of prime minister as a result of the Constitutional Court's ruling doesn't affect investment confidence in Mr Pakorn's view because investors believe regardless of the new premier, major economic policies will not change much.
For the year to date, foreign investment flowing into the Thai capital market amounted to 180 billion baht, on par with capital flows before the pandemic. This indicates clearly that foreign investors have full confidence about investing in Thailand, although the tourism sector has not fully recovered, he said.
Held during Aug 24-26, the Thailand Focus event this year attracted 154 investors, of which 55 are foreign investors and 99 domestic investors.
There are 124 listed companies participating, including 47 companies in the SET50, 39 in the SET100, 33 non-SET100 firms and five from the Market for Alternative Investment.
"We recorded five companies joining and investors are starting to pay more attention to smaller and newer companies," said Mr Pakorn.
The Thai stock market's yields this year are very good compared with the negative numbers posted in the US, European and some Asian markets, he said.
The SET ranks among the top 10 in Asia in terms of capital mobilisation and the top 20 in the world, with average initial public offering money of more than 200 billion baht per year, said Mr Pakorn.
"Investors not only focus on 'new normal' businesses, but also traditional businesses in the food and tourism sectors that have adopted new technologies in order to continue to grow in the new era and maintain the competitiveness of the country in the region," he said.