Thai Stocks Fall for 7 Consecutive Days, Market Cap Drops by 1 Trillion Baht Three Survival Themes to Reduce Portfolio Risk - Thairath English

The Thai stock market has faced ongoing pressure as the index declined for seven consecutive trading days amid widespread selling across multiple industry sectors, resulting in a market capitalization loss exceeding 1 trillion baht. Foreign investors, domestic institutions, and brokerage portfolios have all continued net selling.

Since 27 Oct 2023, the Thai stock market has experienced continuous selling pressure. Market capitalization declined from 19.92 trillion baht on 26 Oct to 18.81 trillion baht on 3 Nov 2023, a decrease of over 1 trillion baht.

Trading on the morning of 4 Nov 2023 continued the decline for the seventh day, dropping as much as 20.95 points before recovering to close at 1,489.66 points, down 1.35 points or -0.09% from the previous day. Market participants await whether the index can turn positive later in the day.

Research department, Asia Plus Securities. They stated that the Thai stock market declined sharply throughout the past week, with selling pressure broad-based across 25 of the 27 industry groups. The weakest sectors were electronic components, followed by petrochemicals and chemicals, then construction materials. Only two sectors remained positive: telecommunications and real estate investment trusts (REITs & PFs).

Between 28 Oct and 3 Nov, foreign investors sold a net 2,397 million baht, brokerage portfolios sold a net 2,084 million baht, and domestic institutions sold a net 1,873 million baht, while retail investors were the only net buyers with 6,354 million baht.

In the TFEX market, foreign investors held a net short position of 52,633 contracts, with open interest rising from 542,022 to 605,259 contracts, indicating new short positions being opened rather than just closing long positions, signaling continued negative sentiment.

Amid ongoing selling pressure and increased volatility in the Thai stock market, investors may need to shift their strategy from focusing on returns to reducing risk and stabilizing portfolios. Asia Plus Securities research recommends three compelling investment themes to navigate the downturn and diversify risk:

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