Foreign Investment Rebounds in Thai Stock Market Amid Export and Consumption Boost, Defying Economic Forecast Downgrade. Despite Lowered Expectations for Federal Reserve Rate Cuts, Global Risk Assets Soar, Marking Record Highs for Bitcoin, US Stocks, and Surging Commodities Prices.
Bangkok, Thailand: In February, foreign funds made a comeback to the Thai stock market, echoing trends in neighboring regional markets, according to Soraphol Tulayasathien, Senior Executive Vice President of The Stock Exchange of Thailand (SET). Despite this positive influx, the economic growth forecast downgrade by the National Economic and Social Development Council, predicting a range of 2.2-3.2 percent for 2024, cast a shadow over the stock market outlook.
Factors such as robust export growth, driven by the global trade recovery, and strong consumption, fueled by the ongoing revival of the tourism sector, provided some tailwinds. In response to these dynamics, analysts revised upward profit estimates for companies in related sectors, leading to a recovery in their stock prices.
Amid local and global uncertainties, analysts recommended investing in high dividend stocks for a reliable passive income stream. Notably, these high dividend-paying stocks not only consistently outperformed the SET Index but were also considered defensive options with a lower beta than the market average.