Thai Equities Are Asia’s Worst Performers on Interest Rate Hikes

Thai equities are Asia’s worst performers this year, hammered by an exodus of foreign investors, inflationary pressures and rising interest rates ahead of elections next month.

(Bloomberg) — Thai equities are Asia’s worst performers this year, hammered by an exodus of foreign investors, inflationary pressures and rising interest rates ahead of elections next month.

The SET Index has declined about 8% so far in 2023, compared with a gain of 2.5% in the MSCI Asia Pacific Index. Overseas traders have withdrawn almost $1.8 billion from Thailand stocks, the biggest outflow in Asia this year after China and India.

Thailand’s central bank earlier this month flagged further rate hikes, potentially nullifying the typical euphoria surrounding elections. Brokers including Kasikorn Securities Pcl and Maybank Securities Thailand Pcl have noted that the SET Index has rallied in the three months before and one month after the past five polls.

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