Analysts at Yuanta Securities (Thailand) assess that the six consecutive days of net selling of Thai stocks by foreign investors, worth 19.8 billion baht, is merely short-term portfolio adjustment. Yesterday net selling accelerated to 7.685 billion baht, the highest in 29 trading days, in line with capital outflows from the region as US bond yields rose. But the heavier net selling of Thai stocks by foreigners during this period is expected to also stem from concerns over the government's water management. Although traffic on main routes has begun returning to normal, many areas remain heavily flooded due to water drainage, compounded by ground-handling problems at Thai Airways that could affect the tourism sector during this period. It is expected that after Friday's non-farm payrolls report, US bond yields will begin to slow their rise, prompting foreigners to return to net buying in the Thai stock market to speculate on third-quarter 2026 earnings during the earnings season from mid-October onward.
Thai Airways International Public Company LimitedGround-handling problems at Thai Airways are cited as a factor that could hurt the tourism sector during the flooding period.
