Thailand Capital Market Overview

In: Business and Management

Submitted By lalaland11
Words 1205
Pages 5
Thailand capital (stock) mkt overview and strength

- Thailand PEST overview
- 5-year history of the mkt
- Effects of the rest of the world
- Current Situation and inner strength
- Government Policies

Chosen industries
- Hospital (BH)
- Rubber (STA)

Thailand PEST overview

Political risk

Economic risk

Social risk

Technological risk

History of the market (2006-2011)

Effects of the rest of the world

The size of activities of foreign investors in Thai stock market

[pic]

We can see that the foreign investors significantly involve in Thai stock market for 20%-25% in total market capitalization, and this proportion will not be lower for the next 10 years because it is tough to promote Thai citizens to invest in the market with large amount of money. This means we have to watch the sentiment of foreign investors carefully.
[pic]

If we compare the size of mkt cap of each country, Thai stock mkt is quite small, being No.7 of Asia. But when we see the share turnover (or amount of volume), Thai stock mkt is significantly liquid, being No.3 of Asia, so foreign investors are quite interested in Thai stock mkt. (Info is as of July 2011)

Thus, when foreign investors around the world are interested in Thai stock market, this will be an opportunity to invest earlier as when fund flows move to Thailand, the overall stock performance in SET will sharply increase.

Model of global fund flows

[pic]
This model also implies that when US and European economies and stock markets become better, they will sell assets in their portfolio and move their funds back, making SET hit rock bottom sharply. We will see next what is the situation of the globe, especially US and Europe. Before that we will see our inner strength first.

Current Situation and inner strength

Summary of Thai economy in August

Economic indicators in 3rd…...

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