Summary · why it matters
Asia Plus Securities said Thailand's capital market in the third quarter came under pressure from continuous foreign capital outflows, with foreign investors selling as much as 37 billion baht of Thai bonds, flipping the cumulative net flow since the start of the year to minus 7.952 billion baht. In the Thai stock market, foreigners dumped nearly 20 billion baht in just six trading days, while in the derivatives market foreign investors built up a net short position of 33,000 contracts over two days. The main pressure came from the widening spread between 10-year US and Thai government bond yields, which hit its highest level since the start of the year, reinforcing the baht's weakening trend and raising the chance it breaks its previous high of 34 baht per dollar. Amid this crisis, opportunities remain for investors in businesses that benefit from a weak baht, namely electronic components such as DELTA, HANA and KCE; food and agricultural exporters such as TU, ITC, CPF, GFPT, STA and NER; and tourism, hotels and healthcare such as MINT, CENTEL, ERW, AOT, BH, BDMS and PR9. The electronic components group in particular got good news when the semiconductor board approved the first national strategy under the CHIP MADE IN THAILAND banner, aiming to attract 2.5 trillion baht in investment, with a short-term goal of drawing 500 billion baht within five years. It focuses on three main technology groups where Thailand has potential: photonics, power chips and sensors, while accelerating the development of integrated circuit design and advanced chip assembly. The government expects this strategy to push industry revenue past 5 trillion baht a year and create more than 230,000 jobs.
Charoen Pokphand Foods Public Company Limited
GFPT Public Company Limited
i-Tail Corp. PCL
Thai Union Group PCL
Bumrungrad Hospital PCL
Praram 9 Hospital Public Company Limited
Airports Of Thailand PCL
