PUBLISHED : 17 Mar 2025 at 10: 29
Investors say that hopes for a stock turnaround lie with Prime Minister Paetongtarn Shinawatra’s government to take more forceful measures to revive the economy. (Photo: Pornprom Satrabhaya)
An ambitious campaign to revive Thailand’s battered stock market is falling flat, as entrenched pessimism about the economy accelerates a foreign funds exodus.
Seven months after $4.5 billion was newly injected into the Vayupak Fund, analysts have been left perplexed by how little it’s helped the benchmark SET Index. The stock gauge has tumbled more than 16% this year, making it the world’s worst performer among 92 indexes tracked by Bloomberg. Over the past 12 months, foreigners pulled out $4.2 billion, the most across Southeast Asia.
At the heart of weak investor sentiment is a lack of confidence that policymakers will be able spur the economy beyond tourism, as well as deep-rooted concerns about high household debt, political uncertainties and corporate scandals. US President Donald Trump’s tariff war is adding to the headwinds as a stronger dollar has forced investors to flee from emerging markets.
“Most people realise our equities are trading at very cheap valuations, but it’s very hard to convince them to invest in stocks now with poor sentiment and a weak economic outlook,” said Narongsak Plodmechai, chief executive officer at SCB Asset Management. The government has “demonstrated its serious intention to rescue
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