The Thai stock market continues to appeal to investors, offering low volatility and a steady average dividend yield of 3.14% since 2000. This stability positions it as an attractive choice for those seeking defensive stock investments.
1. Market Overview (January 2025)
- The stock market saw a downturn as the SET Index closed at 1,314.50 points, marking a 6.1% drop since the end of December 2024. The average daily trading value across the SET and mai stood at 39,006 million THB, reflecting a 17.2% decline compared to January 2024.
2. Economic Context
- Following Donald Trump’s second-term inauguration, the U.S. economy is expected to gain momentum, though policy uncertainties could limit global central banks’ ability to implement monetary easing. U.S. bond yields have climbed, and the dollar is anticipated to strengthen. Nonetheless, the heavy concentration of investments in a handful of AI stocks raises concerns about potential market volatility and significant corrections.
3. Investment Opportunities
- The Thai stock market continues to appeal to investors, offering low volatility and a steady average dividend yield of 3.14% since 2000. This stability positions it as an attractive choice for those seeking defensive stock investments.
4. Sector Performance
- In January 2025, sectors such as finance and energy outperformed the SET Index compared to year-end 2024. The market continues to show signs of institutional investor activity, with domestic institutional trading surpassing 10% of total trading volume for four consecutive months. [Index 3][14]
5. Foreign Investment Trends
- Foreign investors sold a net of 11,504 million THB in January 2025, marking a fourth consecutive month of net selling. Despite this, they maintained the largest share of trading activity at 49.67%. [Index 16][17]
6. Initial Public Offerings (IPOs)
- In January 2025, Thailand saw one new listing on the mai, with Pro Inside Public Company Limited (PIS) joining the exchange. The IPO market was also active in neighboring countries, with significant IPOs in Indonesia and Malaysia. [Index 3][18]
7. Inflation and Real Returns
- Thailand’s inflation rate remains relatively low compared to other countries in the region, enhancing the attractiveness of its dividend yield when adjusted for inflation. [Index 12]
Source : Presentation Summary of the Stock Exchange of Thailand in January 2025
