Stocks move sideways as foreigners unload on rate outlook

A rally in Thai equities that sent the benchmark SET Index to a fourth straight monthly gain in January is losing steam as foreign investors pulled out money for eight straight days, the longest stretch of withdrawals in more than seven months.

Overseas investors have withdrawn more than US$538 million in the past eight trading days, including $119 million on Wednesday. That is the biggest outflow in two months. The SET Index slid 0.7% through Wednesday amid the foreign selloff.

The selloff was sustained as the Bank of Thailand (BoT) is seen raising interest rates in March to contain inflation that is expected to heat up with a revival in tourism and the economy driving up demand.

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