Asadej Kongsiri, director and manager of the Stock Exchange of Thailand, disclosed that the foreign capital currently flowing out of the exchange is a temporary move to avoid risk and is in line with other countries in the region, pressured by rising US government bond yields together with domestic factors concerning energy, the flood situation, and concerns over non-performing loans. However, the overall fundamentals of the Thai economy have not changed, so once the flood situation eases and the numbers become clearer, capital has a chance to flow back in. As for the impact on listed companies, most of the affected companies are not listed on the exchange, and analysts have not shown much concern, assessing that overall exports can still grow. As for confidence among operators in the automotive industrial group that have invested in the country, they will continue to invest in Thailand for the long term. Asadej continued that, from a roadshow together with Prime Minister Anutin Charnvirakul in the United States, most of the investors they met were long-term funds that do not focus on day-to-day trading, and investors were mainly interested in asking the Prime Minister about the country's long-term policies, so it is possible to look past temporary volatility factors.
Rising US government bond yields are cited as the key external pressure driving foreign capital out of Thailand, confirming upward pressure on the 10Y yield.
