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SET Market Report For October 2020

In October, the stock indices in developing countries outperformed those in developed markets, where mounting concerns over soaring number of COVID-19 infection in the U.S. and fears over second round of lockdown in European countries weighed on sentiment. However, The Stock Exchange of Thailand (SET) Index bucked the regional peer trend, partially shadowed by domestic political uncertainty.

 

SET Senior Executive Vice President Soraphol Tulayasathien said SET Index at end-October closed at 1,194.95 points or a 3.4 percent fall from the previous month and a 24.4 percent decrease from the end of 2019, close to MSCI ASEAN level. The index retreat has somehow readjusted the bourse’s price-to-earnings ratio to be near regional peers, while the dividend yield at end-October exceeded the Asian market average. Comparing with year-end performance, many industry groups fared better than SET Index, especially those related to exports to overseas such as Personal Products & Pharmaceuticals, Agribusiness, and Electronic Components sectors.

SET and mai combined average daily trading value in October was THB 53.27 billion (approx. USD 1.73 billion). During the first 10 months of 2020, the average daily trading value amounted to THB 63.42 billion, or a 17.9 percent increase from the same period last year. In addition, mai Index rose to the highest in 2020 at 327.12 points (October 7) before closing at 309.56 at the end of the month.

Local retail investors continued to dominate stock trading value for eight consecutive months in October. Foreign investors were net sellers of over THB 298 billion during the first 10 months, while other types of investors were net buyers.

The Thai capital market's IPO launch momentum continued in October with 4 new listings on SET and another 5 IPOs on mai. As a result, the Thai capital market was ASEAN's largest IPO market for the first 10 months of 2020.

Key highlights for October

  • SET Index ended October at 1,194.95 points, a 3.4 percent decline from the preceding month and a 24.4 percent drop from end-2019 in line with MSCI ASEAN level.
  • Comparing with year-end performance, many industry groups outpaced SET Index, especially those related to exports to overseas such as the Personal Products & Pharmaceuticals, Agribusiness, and Electronic Components sectors.
  • The average daily trading value of SET and mai in October amounted to THB 53.27 billion. During the first 10 months of this year, the average daily trading value expanded to THB 63.42 billion, or a 17.9 percent increase from a year earlier. 
  • In addition, mai Index hit 2020’s high at 327.12 points (October 7) before closing at 309.56 at end-October.    
  • In October, local retail investors continued to dominate stock trading value for the eighth consecutive month. Foreign investors remained as net sellers of over THB 298 billion during Jan-Oct period while other types of investors were net buyers.   
  • The IPO launch activities continued in October with 4 new listings on SET and another 5 IPOs on mai. During the first 10 months, total fundraising value via IPO listed on the Thai bourse was the highest among ASEAN exchanges
  • Forward and historical P/E ratios of SET were 21.5 times and 20.7 times, respectively at end-October, above the average ratio of Asian markets at 17 times and 18.2 times respectively
  • Dividend yield ratio of SET was 3.54 percent at end-October, comparatively higher than Asian stock markets' average ratio of 2.77 percent.

Derivatives market

  • In October, the derivatives trading volume averaged 372,792 contracts per day, down 13.8 percent from the previous month due to the decline of trading volume in almost all products across the board, except SET 50 Index Options. Significantly, during the first 10 months of 2020, the average daily trading volume amounted to 456,923 contracts, a 9.7 percent increase from the same period a year earlier, driven by higher trading volume of SET50 Index Futures, Gold Online Futures and Currency Futures.


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