Reviving LTF Funds: Stimulating the Thai Capital Market and Economy

Stock Exchange sees Finance Minister revive LTF funds to stimulate capital market and support economy As for the SET market in April, it received pressure from the Middle East conflict – US inflation slowed, but foreigners returned to buy net.

May 9, 2024 Mr. Phakorn Peetathawatchai, Director and Manager of the Stock Exchange of Thailand (SET) revealed that according to the Minister of Finance long-term mutual equity funds (LTF) will be brought back according to that plan. The Stock Exchange and related agencies are waiting for information to be sent to the Ministry of Finance. I believe that if the government sector agrees Such a policy will soon see clarity, which will be similar to the situation in the past when the government agreed on a project to establish an ESG department which could be done quickly .

He sees that the Ministry of Finance has brought back LTF money to be used as a good thing. It can help strengthen the capital market and strengthen the Thai economy In the past, the average LTF fund had an investment capital of no less than 40,000-50,000 million baht per year If it can really be used again, it is believed that it will be another channel which will help create stability in the Thai capital market. and stimulate the investment atmosphere even more.

While Mr. Sornphon Tulyasathien, Deputy Manager, Head of Corporate Strategic Planning Department The Stock Exchange of Thailand (SET) revealed that in April 2024 investors are worried about geopolitical conflicts in the Middle East. Affecting the price of world crude oil and gold to increase. It may also cause inflation to fall more slowly than expected. by US bond yields rose in opposition to the US stock index.

The results of the United States Federal Reserve (Fed) meeting which decided to maintain interest rates as expected by the market. According to a statement by the Chairman of the Fed, Jerome Powell, it is likely to keep interest rates high for a longer period of time. At the same time, he has indicated that he will not raise interest rates again in the future. This makes investors adjust the probability that the Fed will raise interest rates to 1-2 times this year.

Although the exchange rate of the baht against the US dollar is a fluctuating movement with regional currency devaluation According to the forecasts of the Fed’s monetary policy direction In addition, the export sector is still under pressure from structural factors.

In terms of factors supporting Thai stocks for the rest of 2024, the Thai economy is likely to expand higher than the previous year. Driven by domestic consumption and tourism, the government’s 2024 spending and investment budget is delayed, which is expected to be paid in the 2nd quarter of 2024. Including analysts adjusting Forward EPS for Thai stocks to increase 11 %, while Thai stocks are currently trading at a PE level 20% below the 5-year historical average.

Regarding the position of the Thai stock market at the end of April 2024, the SET Index closed at 1,367.95 points, down 0.7% from the previous month. which falls less than the regional average. This decreased by 2.7% compared to the end of the previous year.

In April 2024 Industry groups that outperformed the SET Index compared to the end of 2023 included service groups, consumer products groups, and agriculture and food industry groups.

The average daily trading value on SET increased from March 2024 to 44,448 million baht, although it decreased by 5% from the same period last year However, foreign investors returned to buy a net amount of 3,787 million baht the largest share of value trading for the 24th consecutive month.

The newly listed company for trading on SET has 1 security, namely Neo Corporate Public Company Limited (NEO) and in 5 securities, including Asia Palm Oil Public Company Limited (APO), BPS Public Company Limited (BPS), QTCG Public Company Limited (QTCG), Terabyte Plus Public Company Limited (TERA), Stone One Public Company Limited (STX)

The Forward P/E of the Stock Exchange of Thailand at the end of April 2024 was 14.6 times, higher than the average of Asian stock exchanges at 12.2 times, and the Historical P/E was 17.3 times, higher than the average of the stock market in Asia, and was at a level of 15.5 times, the dividend yield at the end of April 2024 was 3.40%, higher than the average of 3.18% on stock exchanges in Asia.

Regarding futures market conditions In April 2024 The Futures Exchange (TFEX) had an average daily trading volume of 459,746 contracts, a decrease of 8.0% from the previous month, mainly due to a decrease in the SET50 Index Futures and Single Stock Futures , and during the first 4 months of 2024 there was a decrease in trading volume The daily average was 438,862 contracts, a decrease of 21.6% from the same period last year. What matters is the fall in Single Stock Futures and SET50 Index Futures.

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