The Thai stock market has recently shown some volatility, mainly driven in the short term by major news from the United States: the giant company SpaceX is preparing for an initial public offering (IPO) with an enormous valuation of up to 75 billion U.S. dollars.
This news has led investors worldwide to prepare to move or withdraw funds from other markets to invest in this big-name stock. Consequently, our local market has also felt the ripple effects of this shift.
However, the Stock Exchange of Thailand has reassured that the Thai stock market can withstand this impact better than many other countries because it lacks the kind of hot technology stocks that tend to plunge sharply. Instead, it features a diverse range of industries. Moreover, after conducting roadshows, foreign investors remain confident in Thailand's stable management and governance.
Assadech Kongsiri, director and managing director of the Stock Exchange of Thailand (SET). He said that looking at the recent performance of the Thai stock market, it has been less volatile than other markets because it does not have the same hot technology sector as seen abroad.
In the short term, the market may experience some volatility due to large companies preparing for IPOs in the U.S. market, such as SpaceX, which is expected to raise up to 75 billion U.S. dollars. This will cause capital to circulate, with investors possibly withdrawing funds or taking profits from current investments to prepare for investing in these large stocks.
Nonetheless, from meetings with foreign investors, there remains strong interest and confidence in the stability of the Thai capital market, as well as the country's management capabilities amid ongoing war conditions and rising energy prices.
At the same time, a key positive factor that has helped the Thai stock market decline less than others in the region is its high diversification, even though Thailand has large-cap stocks like Delta (DELTA) with a relatively high weighting.
Compared to the overall market, the Thai stock market still has large-cap stocks across various industries, allowing investors to shift funds into sectors like energy, tourism, or healthcare. This lack of reliance on any single stock reduces the overall market impact.
Regarding the progress of the personal investment savings account project (TISA), the Ministry of Finance team is currently studying and discussing details continuously, including which assets will qualify and the consideration of investment limits. These will be assessed alongside the current overall fiscal policy. It is expected that clarity will be provided soon.
Additionally, the Federation of Thai Capital Market Organizations (FETCO) is scheduled to meet with the Minister of Finance by 11 June to exchange views on the capital market situation and discuss cooperation strategies.
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