Investment returns in SET remain low in October

BANGKOK, Nov 12 (TNA) – Stock Exchange of Thailand (SET) Senior Executive Vice President Virathai Santipraphop on Wednesday allowed that investment returns in the Thai bourse remained lower than those of the neighbouring countries during October.

As at the end of October, he said, SET and most other stock markets in the region had declined upon concerns over the global economic recovery.

Such concerns, fuelled by negative domestic news reports, led to the SET falling by 4.44 per cent from the end of September, Mr Virathai said.

It resulted in the forward price/earning (P/E) ratio as of October 30 dropping to 11.9 times, which is still lower than other countries in the region such as Taiwan with a P/E ratio 23.3 times, Korea with 13.1 times, Indonesia with 14.9 times, Malaysia with 17.1 times, Singapore with 16.7, and the Philippines with 14.1 times.

In particular, he said, Thailand’s political impasse, which has persisted for several years, has dampened investment sentiment in securities trading.

To boost the market sentiment, he advised that SET increase the number of listed companies and accelerate implementing the capital market development plan to enhance market competitiveness.

“The forward P/E ratio of SET has continued to fall in comparison to those of the neighbouring countries since the political problems broke out. However, the situation has begun to gradually improve for now,” he said. (TNA)