Foreigners flee Thai stocks... but as tourists come running back

Foreigners flee Thai stocks... but as tourists come running back

Foreign investor stock sales $1.24 billion this year ($1.09 billion in 2014, $6.21 billion in 2013) but tourism sector gets boost from baht's 6.4% plunge over last 6 months.

Stock investor in front of the Stock Exchange of Thailand (SET) stock board reads the financial news.


Foreigners flee Thai stocks


Bloomberg News Agency

Foreign investors are selling Thai stocks at the fastest pace this year as the nation’s military government struggles to deliver on pledges to revive economic growth

Overseas funds unloaded a net $774 million of Thai shares in July as the benchmark Stock Exchange of Thailand (SET) Index fell 4.3%. The baht is trading near the weakest level in more than six years after slumping 3.4% against the United States dollar last month.

The selloff suggests international money managers are losing patience amid falling exports, weak corporate earnings and a contraction in manufacturing. Prime Minister Prayut Chan-o-cha has failed to make much headway on planned investments in transport infrastructure, disappointing investors who had bet the projects would help kick-start Southeast Asia's second-largest economy.

"We still don’t see any bargains," said Roshan Padamadan, a Singapore-based money manager at Luminance Global Fund. "A dark cloud is hanging over the horizon," he said.

The Ministry of Finance last week cut its forecasts for exports and gross domestic product (GDP) growth for a third time this year. A factory output index has fallen every month but one since March 2013, while exports have declined each month this year. The government has disbursed less than half the 450 billion baht ($13 billion) earmarked for roads, mass transit and other infrastructure projects in the fiscal year ending Sept 30...


International investors have sold $1.24 billion of Thai stocks so far this year, following withdrawals of $1.09 billion in 2014 and $6.21 billion in 2013.

...Some experts say foreign outflows may abate as traders with short-term strategies may have already sold their holdings. Overseas investors with long-term strategies are the ones who still hold Thai stocks.

The government's spending is expected to come into effect from the fourth quarter this year onward and some construction companies will directly benefit from that state spending... 

Thailand’s tourism sector is also getting a boost from the baht's 6.4% plunge over the past six months. The SET Tourism & Leisure Index has risen 7.3% this year, compared to a 3.8% decline for the benchmark gauge (main stock index).

Still, lacklustre earnings in the broader market are deterring investors. Profits for SET index companies grew less than 4% in the three months ended June 30, after declining for three straight quarters through March...

"Listed companies' earnings growth has been disappointing as a result of the weak economy," said Win Phromphaet, the head of investment at the Social Security Office, which oversees about $37 billion as Thailand's largest investor.

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  • abate: to become less strong - เบาบาง, ทำให้สิ้นสุด
  • adj (noun): connected with soldiers or the armed forces - ในทางทหาร,เกี่ยวกับทหาร
  • amid: at the same time as - ท่ามกลาง
  • bargain (noun): something you buy that costs much less than normal - สินค้าราคาถูก
  • based: where the main work of a business is done or controlled - ซึ่งเป็นศูนย์กลาง
  • benchmark (noun): a standard that other things can be compared to, for example, to calculate prices - ตัวเปรียบเทียบ; การวัดเปรียบเทียบสมรรถนะเกณฑ์มาตรฐานหมายถึง การทดสอบเพื่อวัดความสามารถในการประมวลผล หรือการทำงานของ โปรแกรมใดโปรแกรมหนึ่ง หรืออุปกรณ์คอมพิวเตอร์ชนิดใดชนิดหนึ่ง โดยเทียบเคียงกับเกณฑ์มาตรฐาน
  • benefit: to get help or an advantage from something - ผลประโยชน์
  • bet: used to say that you are almost certain that something is true or that something will happen - กล้าคาดคะเน
  • board: a long thin piece of strong hard material, especially wood, used, for example, for making floors, building walls and roofs and making boats - กระดาน
  • boost: to increase - เพิ่ม
  • cloud (verb): to make something you are discussing or considering less clear; to make something less pleasant or enjoyable - ก่อให้เกิดปัญหา, ทำให้ไม่มีความชัดเจน
  • come into effect: to begin to be used - เริ่มใช้
  • compare (verb): to show or state that somebody/something is similar to somebody/something else - เปรียบเทียบ
  • construction: the work of building or making something, especially buildings, bridges, etc. - การก่อสร้าง
  • contraction: when something becomes smaller or shorter - การหดตัว
  • corporate: involving large companies - บริษัทใหญ่
  • decline: becoming less - การลดลง
  • decline: to become less or worse - ลดลง
  • deliver: to do what you what you are expected to do; to produce or provide what people expect you to - ทำตามความสามารถ
  • deter: to make someone decide not to do something - ขัดขวาง, ยับยั้ง, ป้องกัน
  • directly (adv): in a direct line or manner; immediately - โดยตรง, ทันที
  • disappointing: not as good, successful, etc. as you had hoped; making you feel disappointed - น่าผิดหวัง, ผิดคาด
  • disburse: to pay money to someone from a large amount that has been collected for a purpose - เบิกจ่าย
  • earmark: to decide to use something, often money, for a particular purpose - ตัดสินใจที่จะใช้สำหรับวัตถุประสงค์เฉพาะ
  • earnings (noun): the profit that a company makes; the money a worker is paid; money received from investments - รายได้, กำไร, ผลกำไร
  • expert: someone who has a particular skill or who knows a lot about a particular subject - ผู้เชี่ยวชาญ
  • export (noun): something sold and transported to another country - สินค้าออก
  • factory: a building or group of buildings where goods are made - โรงงาน
  • financial: involving money - เกี่ยวกับเงิน, ทางการเงิน
  • fiscal year: the government budget year which begins in October in Thailand, - ปีงบประมาณ
  • forecast: a statement about what will happen in the future based on information available now - การพยากรณ์, การคาดการณ์
  • fund (noun): investment fund, money collected together to invest in companies or projects -
  • growth (noun): economic growth, an increase in economic activity - การเติบโต
  • heading for: moving towards; moving the direction of - มุ่งหน้าไปยัง
  • headway: progress - ความคืบหน้า
  • holdings: the stock shares and part ownership in a company that someone owns or "holds" -
  • horizon: the line in the distance where the sky seems to meet the earth - ขอบฟ้า
  • index: a number that shows the price, value, or level of something compared with something else - ดัชนี
  • infrastructure: a set of systems within a place or organisation that affect how well it operates, e.g., the telephone and transport systems in a country or the system of train tracks that a railway uses - สาธารณูปโภค
  • international: connected with or involving two or more countries - นานาชาติ, สากล, ระหว่างประเทศ
  • investment (noun): the act of investing money in something - การลงทุน
  • investor: a person or organization that invests money, i.e., uses money with the aim of making a profit from it, for example by buying property or buying shares in a company - นักลงทุน
  • kick-start: to start quickly and suddenly, like kicking the starting pedal of a motorcycle -
  • lacklustre: not lively, exciting, or impressive - ที่น่าเบื่อ, ไม่แวววาว
  • leisure: relating to activities that you do to relax or enjoy yourself - เกี่ยวกับเวลาว่าง
  • level: the amount of something that exists in a particular situation at a particular time - ระดับ
  • listed company: a public company, i.e., a company that offers its shares to the public on a stock exchange - บริษัทมหาชน
  • long-term: that will last or have an effect over a long period of time - ระยะยาว
  • losing patience: no longer be willing to wait or suffer without complaining or becoming annoyed - หมดความอดทน
  • manufacturing (noun): making and producing a product - การผลิต
  • mass transit: involving the movement of large numbers of people, using buses, trains, etc. - การขนส่งมวลชน
  • money manager: portfolio manager, investment manager, a business or person who makes investments for other people, managing the securities portfolio of an individual or institutional investor (Source: Investopedia) -
  • nation: a country considered as a group of people with the same language, culture and history, who live in a particular area under one government; all the people in a country - ประเทศ, คนในประเทศ
  • net: to earn a particular amount of money after taxes or other costs have been removed - ได้กำไรสุทธิ
  • onwards: continuing from a particular time - ต่อมา
  • outflow (noun): the movement of a large amount of money, liquid, people, etc. out of a place - การไหลออกมา
  • output: the amount of something produced - ปริมาณ(กระแสไฟฟ้า)ที่ผลิตขึ้น
  • overseas: connected with foreign countries, especially those separated from your country by the sea or ocean - เกี่ยวกับต่างประเทศ, ข้ามทะเล
  • oversee: to watch something in order to check that it works or happens in the way that it should - ตรวจตรา
  • pace: the speed at which something happens or is done - อัตรา
  • patience: the ability to wait for a long time without becoming angry or upset - ความอดทน
  • pledge: a serious promise - คำมั่้นสัญญา
  • plunge: to fall quickly from a high position - ดิ่งลงมาจากท้องฟ้า
  • profit: money that you make from selling goods and services after all your costs have been paid - กำไร
  • project: a planned piece of work that is designed to find information about something, to produce something new, or to improve something - โครงการ
  • quarter (noun): three months of the year on the official calendar of the government or companies - ไตรมาส
  • revive: to come or bring something back to life, health, existence, or use - ทำให้ฟื้นชีพ
  • sector: a part of a country’s economy or business activity - ภาคเศรษฐกิจของประเทศ
  • share: any of the units of equal value into which a company is divided and sold to raise money. People who own shares receive part of the company's profits - หุ้น
  • short-term: lasting a short time; designed only for a short period of time in the future - ระยะสั้น, ช่วงสั้น
  • slump: to fall suddenly - ตกต่ำมาก
  • social security: money that the government pays regularly to people who are poor, unemployed, sick, etc - สวัสดิการสังคม,ระบบการประกันสังคม
  • state: government - รัฐ
  • Stock Exchange of Thailand: the main institution in Thailand where shares in companies are bought and sold - ตลาดหลักทรัพย์แห่งประเทศไทย
  • straight: consecutive; happening one after the other, without interruption - ต่อเนื่อง
  • strategy: a plan or method for achieving something, especially over a long period of time - ยุทธวิธี, แผนการ  
  • struggle: a very difficult task that you can do only by making a great effort - ความพยายาม
  • suggest: to mention an idea or a plan for somebody else to think about - เสนอ, เสนอแนะ
  • trade: the buying and selling of goods and services - การค้าขาย
  • trader: someone who buys and sells things - ผู้ค้า
  • transport: moving people or things from one place to another - การขนส่ง
  • unload (verb): sell the things that you have so that you don't have them anymore -
  • withdrawal (noun): the act of taking something away so it is not longer in use - การถอน
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