Bangkok: The Stock Exchange of Thailand recently reported a significant increase in foreign ownership of Thai stocks, reaching a record high of 5.61 trillion baht, or 35.7% of the total market shares by the end of last year. This figure further climbed to 6.11 trillion baht by the end of January 2026, marking a notable rise in foreign-held market capitalization.
According to Thai News Agency, foreign investors' trading activities in 2025 reached 10.5 trillion baht, accounting for approximately 52.8% of the total trading volume on the Stock Exchange. This consistent figure over the past three years underscores the dominant role of foreign investors in the Thai stock market. Despite this, foreign investors have primarily engaged in selling, with net sales of 107 billion baht in 2025 alone. Yet, the early months of 2026 witnessed a reversal, with net purchases exceeding 20 billion baht in January and 54,471 million baht in February, propelling the stock market to a global high.
Skepticism arises from the long-standing trend of foreign investors being net sellers, averaging sales of hundreds of billions of baht annually over the past decade. The substantial increase in foreign ownership, despite persistent selling, is attributed to the significant appreciation in the value of certain stocks, notably DELTA. DELTA's market capitalization surged from 1.04 trillion baht at the end of 2022 to 3.18 trillion baht by March 2026, illustrating the impact of stock price escalation on perceived foreign ownership.
The increase in foreign shareholdings appears to be driven by the appreciation of stocks heavily held by foreigners, rather than increased purchases. DELTA's share value growth has seemingly elevated foreign ownership proportions, while other stocks showed negligible growth, contributing to this upward trend.
The high trading volume by foreign investors is often seen as speculative, focusing on a limited number of large-cap stocks with high liquidity. This activity is facilitated by automated trading platforms, enabling rapid transactions with low commission fees. Such speculative trading maintains liquidity in the Thai market, although it may not necessarily reflect strong business fundamentals.
Historically, foreigners have wielded significant influence over the Thai stock market. Their buying and selling activities have been closely correlated with market movements. For instance, net foreign buying of 1 billion baht typically resulted in an index increase of 7 points. This trend dates back to post-crisis periods, such as the recovery following the 1998 Tom Yum Goong crisis and the 2008-2012 subprime crisis recovery, where foreign buying significantly impacted the stock market index.
Presently, amidst an aging society and economic challenges, the Thai stock market faces stagnation. Recent political changes and strong performances in other markets have sparked hopes for renewed foreign investment. However, geopolitical tensions in March have stalled this momentum, leaving the future of foreign fund flows uncertain.
The Thai stock market's trajectory remains heavily reliant on foreign investors' net buying activity, which continues to play a pivotal role in the market's dynamics and overall performance.