SET market report for June 2020

Stocks and Financial Services Press Releases Wednesday July 8, 2020 17:10
Bangkok--8 Jul--The Stock Exchange of Thailand

The Stock Exchange of Thailand (SET) Index at end-June closed at 1,339.03 points or a 0.3 percent drop from the previous month but a 2.8 percent rise in terms of US dollars. Practically all industries outperformed SET Index, excepting Financials and Property & Construction industry groups.

SET Senior Executive Vice President Soraphol Tulayasathien said that the SET Index was relatively flat in June, while the average daily trading value was extremely active. The SET and mai combined average daily trading value was at THB 77.36 billion or a 27.8 percent rise from the same period last year, making the record high in 30 months and also the second highest level in historical record. This resulted in the average trading value of first-half at THB 68.62 billion, or a 38.2 percent increase from the same period of last year. Notably, retail investors were instrumental, marking the fourth successive month of dominating the overall trading, accounted for 48.76 percent of total trading.

In addition, the market started to see increasing confidence when foreign investors were slowing down their net selling while turning to become net buyers in the bond market. Moreover, listed companies resumed their fundraising activities in the primary market and will start to list their initial public offerings (IPOs) in the Thai bourse in July. SET has secured its position as the region’s largest fundraising hub via IPOs during the first half of 2020.

Key highlights for June

SET Index ended June at 1,339.03 points, a 0.3 percent slight drop from the preceding month and a 15.2 percent decrease from end-2019. However, considering the returns in terms of US dollars, the Index rose by 2.8 percent and down 17.8 percent respectively.Almost all industries, except Financials and Property & Construction industry groups, outperformed SET Index in June.In June, foreign investors were net sellers of THB 22.38 billion, trending the same way as other markets in the region. During the first half of 2020, they were net sellers of THB 215.74 billion while other types of investors were net buyers.In June, average daily trading value of SET and mai rose to THB 77.36 billion or a 27.8 percent increase from a year ago, making the record high in 30 months and the second highest level in its historical record.     Retail investors dominated the trading value for the fourth consecutive month, accounting for 48.76 percent of total trading value.Forward and historical P/E ratios of SET were 20.5 times and 18.7 times respectively at end-June, exceeding the average ratio of Asian markets at 15.5 times and 16.0 times, respectively.Dividend yield ratio of SET was 3.70 percent at end-June, above Asian stock markets' average ratio of 3.15 percent.

Derivatives market

In June, the derivatives trading volume averaged 498,244 contracts per day, up 56.6 percent from the previous month, mainly driven by trading in SET 50 Index Futures and Single Stock Future. During the first half of 2020, the average daily trading was at 498,402 contracts, a 31.8 percent increase from the same period a year earlier.

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