Thailand’s SET Index rose nearly 30pts or 2.1% to 1,395.07 points during the morning session on Thursday, the highest level since April this year, as the market is eager on the upcoming new unit of Vayupak Fund that should see an inflow of 150 billion baht (approx $4.4 billion) to the capital market, especially mid and small-cap stocks and listed companies with good ESG ratings.
Despite global market pressures due to disappointing economic data from China and the US, Thailand’s stock market exhibited resilience on Wednesday by closing in positive territory. The market rebounded after King Maha Vajiralongkorn endorsed Prime Minister Paetongtarn Shinawatra’s cabinet lineup ahead of schedule, fueling speculations of an early unveiling of the PM’s economic policies to potentially stimulate domestic and foreign investments.
The index continued to surge on Thursday after the report of Thailand’s public fund, known as ‘Vayupak’, is set to offer its Type A unit, VAYU1, for public subscription from September 16 to 20 with a total valuation not exceeding 150 billion baht.
This initiative marks the commencement of the government’s strategy to attract fund inflows, notably from foreign investors, aiming to revitalize the underperforming Thai capital market compared to global counterparts this year.
The introduction of VAYU1 is expected to significantly bolster the stock market by targeting to raise 150 billion baht. Unlike the existing Vayupak Fund 1’s focus on blue chips and SET100 Index, VAYU1 will concentrate on mid and small-cap stocks, particularly those with high ESG ratings. The new unit guarantees a minimum return over its 10-year tenor and will distribute dividends based on its actual operating performance.
Institutional investors can subscribe to the new unit of Vayupak Fund from September 18 to 20. Following the fund’s capital raise, securities will be added to its portfolio starting October 1, with the unit scheduled to debut on the Thai stock market on October 15.
