SET Market Report For May 2020

Source: Mondo Visione 2020-06-13

The Stock Exchange of Thailand (SET) Index closed up 3.2 percent from the previous month at 1,342.85 points at the end of May, with a 22 percent surge in the average daily trading value of SET and Market for Alternative Investment (mai) from the 2019 average to THB 65.03 billion (approx. USD 2.06 billion). Foreign investors reduced their net exposure in Thai shares by THB 31.58 billion, down from the preceding month and in tandem with other Asian markets.

SET Senior Executive Vice President Soraphol Tulayasathien said that in May the Thai bourse continued to bounce back from the previous month, moving in the same direction as other Asian markets. The Thai stock market's gain was attributable to the improved sign of the COVID-19 infections situation, the second and the third-phase of the lockdown relaxation and the increased weightings of Thai equities in MSCI Index. However, investors are recommended to keep eyes on such external factors as the geopolitical tension between the US and China which could reignite trade retaliation amid efforts to recover the global economy after the COVID-19 crisis.

Key highlights for May

Securities market:

SET Index ended May at 1,342.85 points, up 3.2 percent from the preceding month. Industrials, Agro & Food Industry, Technology, Consumer Products, and Services industry groups outpaced SET Index.
In May, foreign investors sold a net THB 31.58 billion.
The average daily trading value of SET and mai in May amounted to THB 65.03 billion, rising 22 percent from the average in 2019.
Forward P/E ratio of SET was 19.8 times at the end of May, while historical P/E ratio stood at 18.5 times, exceeding the average of the Asian markets at 14.5 times and 15.2 times, respectively.
Dividend yield ratio of SET was 3.68 percent at end-May, above Asian stock markets' average ratio of 3.32 percent.
The combined market capitalization of SET and mai at end-May fell 13.6 percent from end-2019 to THB 14.6 trillion.
For the five months to May, the fundraising via initial public offering (IPO) totaled THB 56.12 billion, while the secondary public offering (SPO) amounted to THB 15.12 billion.

Derivatives market:

In May, the derivatives trading volume averaged 318,201 contracts per day, down 12.9 percent from the previous month.

SET Market Report For May 2020

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