Foreign investors continue to sell Thai stocks, with net sales in April exceeding 46.9 billion baht, ranking second after South Korea. 'Trinity' reveals that foreign ownership of Thai stocks has dropped to a record low, while 'Kasikorn Securities' showcases an 8-year total of over 903 billion baht in foreign sales.

Since the beginning of the year, foreign investors have net sold a total of 162 billion baht in the Thai stock market, equivalent to about 5 billion dollars. This positions Thailand as the fifth largest market for foreign sell-offs in the region. The top spot is held by China, where foreign investors net sold over 30 billion dollars, followed by Taiwan with 17.7 billion dollars, South Korea with 17.6 billion dollars, and India with 7 billion dollars.

Mr. Nattachat Mekmasin, Assistant Managing Director of Securities Analysis at Trinity Securities, stated that in April alone, foreign investors sold a total of 46.9 billion baht, or about 1.4 billion dollars, making it the second highest after South Korea, which saw sell-offs of 4 billion dollars. This has reduced foreign ownership of Thai stocks to just 27.1%, the lowest level on record.

Regarding the trend of capital flow, it is believed that outflows will continue due to significant pressure from the valuation of the Thai stock market, which is high compared to other Asian markets. Additionally, Thailand's earnings per share (EPS) have been reduced by over 30%, the highest in the Asian stock markets as well.

Mr. Sunthorn Thongthip, Senior Director at Kasikorn Securities, noted that over the past 8 years, foreign investors have net sold in the Thai stock market almost every year, totaling over 903 billion baht, with only 2014 seeing a net purchase of 77.9 billion baht. The trend for the Thai stock market is expected to continue rising strongly, and foreign investors are likely to keep net selling.

The negative factors contributing to the outflow of funds are believed to stem from the Thai stock market's PE ratio, which is trading at the highest level compared to foreign markets. Currently, Thailand's PE ratio is at 17-18 times, higher than the 5-year average of 14.5 times, contrasting with most foreign markets that are trading below their 5-year averages.

SOURCE : www.bangkokbiznews.com