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SET Index June 67 down 3.3% as investors await clarity on government economic stimulus measures

Bangkok, SET Index June 67 decreased by 3.3% as investors wait for clarity on government economic stimulus measures and the Fed cutting interest rates. It is expected that there will be a chance to see fundflows flowing in the second half of the year. It indicates that daily Short Sell has decreased after Uptick Rules were enforced on July 1, 67. Continue to monitor. Mr. Soraphol Tulayasathien, Deputy Managing Director, Head of Corporate Strategy, Stock Exchange of Thailand (SET), revealed the Thai stock market at the end of June 2024. The SET Index closed at 1,300.96 points, down 3.3% from the previous month and down 8.1% compared to the end of 2023. Investors are still waiting for clarity on the government's economic stimulus measures and assessing the impact of the capital market confidence-building measures announced at the end of June. The industry groups that performed better than the SET Index compared to the end of 2023 are the consumer goods group, the agriculture group, and the food industry group . and technology group) while the Forward P/E of the Stock Exchange of Thailand at the end of June 2024 was at 14.0 times, higher than the average of the stock exchanges in Asia which was at 12.4 times, and the Historical PIE was at 15.6 times, higher than the average of the stock exchanges in Asia which was at 15.2 times. In terms of the dividend yield, it was at 3.62%, higher than the average of the stock exchanges in Asia which was at 3.16%. In the first 6 months of 2024, the average daily trading value was 45,238 million baht, down 22.9% from the same period last year, while foreign investors sold a net total of 115,983 million baht, and had the highest proportion of trading value for the 26th consecutive month. In addition, in the first half of 2024, there were 6 new listed companies trading on the SET and 11 on the mai, with a total fundraising value of 15,643 million baht. Mr. Soraphol further revealed that in the second half of 2024, signs of increased production capacity for export in developing co untries began to be seen, indicating that the global economy was recovering. In addition, money for the world tends to decrease to the target range in the near future, causing major central banks in many countries to reduce policy interest rates after implementing tight monetary policies for more than 3 years. However, investors are still waiting for the US Federal Reserve to cut interest rates for the first time, which is likely to happen this year. In addition, if we consider historical data, it will be good for the stock market in emerging markets if the Fed cuts interest rates. For Thailand's macro-economy, there are continuous signs of recovery from the export and tourism sectors that grew better than expected. There are also signs of importing goods for further production in the private sector, including spending on consumption and investment by the government sector, which has increased disbursement after the budget was delayed in the previous period. These indicators show that the Thai economy is lik ely to be strong in the second half of 2024. If we consider the price-to-book value ratio (P/B ratio), which compares the company's share price to its book value per share, Thai stocks have a P/B ratio of less than 1 to 51.5%, indicating that the market is valuing the company lower than its asset value. Meanwhile, the announcement of Uptick Rules starting in July 2024 will result in a decrease in the average daily Short Sell value and help reduce the volatility of the SET Index. In addition, the adjustment of the ThaiESG fund criteria to have a holding period that is similar to the LTF fund will likely result in investment funds through domestic institutional investors, which will help the SET Index improve in the future. Mr. Rongrak Panaphawuttikul, Deputy Managing Director and Spokesperson of the Stock Exchange of Thailand, mentioned about the current volatile stock market that the Stock Exchange of Thailand has discussed with the SEC about the case of listed companies using their shares as collateral to borrow money from financial institutions both domestically and internationally. Will the existing regulations allow for information disclosure or will the regulations need to be adjusted in order for investors to be aware of the information and reduce investment risks? Another case is whether listed companies that use their assets as collateral to pay debts in margin accounts, which normally disclose information monthly, will be able to disclose information sooner. Source: Thai News Agency

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