Asadej Kongsiri, the recently appointed president of the Stock Exchange of Thailand (SET), is prioritizing the restoration of investor trust in the nation’s capital market, which has been marred by corporate scandals, concerns over illegal short selling, and political instability.
In his first press conference since assuming leadership at SET, Asadej expressed his commitment to synchronize existing plans and ensure their rapid execution. He acknowledged the recent erosion of trust and confidence within the market, highlighting the imperative to regain investor faith.
The new chief faces the task of maintaining the recent surge in trading volume and stock market rally, following the appointment of Paetongtarn Shinawatra as Thailand’s prime minister in August. Prior to this resurgence, the benchmark index experienced a significant decline in market value from its peak in 2023 amid dwindling turnover.
To address concerns and restore market integrity, SET and regulatory bodies have introduced various measures such as compulsory registration for high-frequency traders and stricter disclosure standards to combat illicit short selling practices. Additionally, efforts have been intensified to combat corporate fraud, particularly within listed companies like Energy Absolute Pcl, Stark Corp., and More Return Pcl.
In September, the recovery in Thai stocks led to foreign investors purchasing a net sum of $867 million in stocks, marking the first monthly inflow since April. This influx of foreign investment contributed to the significant uptick in the benchmark index, resulting in its most substantial quarterly gain since the fourth quarter of 2020.
However, despite this positive trend, portfolio investors have been net sellers of Thai shares totaling $2.6 billion throughout the year.
Asadej remains optimistic about Thai stock prospects in the fourth quarter, citing political stability and the strong recovery of Southeast Asia’s second-largest economy.
A survey by the Federation of Thai Capital Market Organizations indicates local investors’ bullish sentiment towards stocks over the coming months, with the FETCO Investor Confidence Index rebounding to a “bullish zone” in August.
Notably, Asadej, the first outsider in ten years to lead the Thai exchange, brings a wealth of experience to his role, with a master’s degree in business from the Massachusetts Institute of Technology and previous stints at PTT Pcl and Finansa Securities Pcl.
