The Thai stock market recently reached a 10-year low, causing investment advisors to urge caution in adjusting portfolios. The market fell below 1,400 points, a level not seen since 2013. Despite a moderate price-to-earnings ratio, concerns about the international situation and bond yields have led to this decline. Oversupply of bonds resulting from the Thai government’s digital wallet policy and increased borrowing is also impacting the market negatively, leading to drops of 11.8% in September and 16.8% in October.
Investors are being advised to approach the Thai stock market with caution due to the potential economic decline in the US and Europe. The market is expected to remain concerned about the ongoing economic downturn. The global outlook remains uncertain, and the current earnings season is giving mixed results. As a result, the Thai stock market is likely to continue experiencing volatility in the near future. Key factors that will influence the market include the political situation in Thailand, monetary policy decisions by the Bank of Thailand, and actions taken by the US Federal Reserve.
