SET reveals value of foreign investors’ shareholding in Thai stock market in 2023 and 2024

Bangkok, The Stock Exchange of Thailand (SET) published SET Note No. 8/2024 'Revealing the Value of Foreign Investors' Shareholdings in the Thai Stock Market', a comparative study of foreign investors' shareholdings in the Thai stock market at the end of 2023 and June 20, 2024, summarizing the important study results as follows: Foreign investors have a total holding value of 4.73 trillion baht in the Thai stock market, down 7.4% from the end of the previous year, which is a decrease in the same direction as the overall market, with the SET Index down 8.3%. And because the value of holdings decreased in a smaller proportion than the decrease in market capitalization, the proportion of holdings by foreign investors increased from 29.43% at the end of 2023 to 29.62% of the total market capitalization. As of 20 June 2024, foreign investors held a total of 847 securities in the Thai stock market, a net increase of 24 securities from the end of 2023, from holding shares of 17 newly listed securities during the study period and from purchasing and holding 13 listed securities before 2024. However, during the same period, the value of holding shares decreased by 6 securities from 1) 2 securities that were delisted from the Stock Exchange of Thailand and 2) foreign investors sold shares of 4 securities. Considering the change in the value of stock holdings at the end of 2023 and 20 June 2024, by classifying securities into 5 groups: 1) securities held by foreign investors at both time points, 2) securities that were delisted during the study period, 3) securities that foreign investors sold during the study period, 4) securities that foreign investors increased their holdings from newly listed securities, and 5) securities that foreign investors increased their holdings from buying to hold, it was found that the value of stock holdings that changed mostly came from the first group of securities that foreign investors continuously held at both time points studied. This group of securities had a shareholding value decr ease of 387 billion baht from the end of 2023. If we consider the impact of stock prices (Price Effect) and the number of shares (Volume Effect) on the value of foreign investors' holdings (Foreign Holding Value), we find that 80% of the change in the value of foreign investors' holdings is the effect of changes in stock prices and another 20% is the result of changes in the number of shares held, which are caused by other activities such as new securities listings, securities trading activities, Corporate Actions activities, and fundraising in the secondary market, as well as delisting from the list of securities, etc. Source: Thai News Agency