What To Know
- The Thai stock market is undergoing noticeable shifts in investor dynamics as foreign ownership dropped to 4.
- 99% of this, a significant drop driven by falling stock prices, net foreign sell-offs, and the delisting of certain companies.
Bangkok Business News: Shifting Investor Landscape
The Thai stock market is undergoing noticeable shifts in investor dynamics as foreign ownership dropped to 4.43 trillion baht by mid-2025, down from 5.84 trillion baht at the end of 2024. This Bangkok Business News report highlights that domestic retail investors, who once dominated with over 50% of market participation, now account for only 30–35%. Institutional and fund investors have also lost ground, with their share slipping to around 10–12%.
Foreigners are moving out of the Thai Stock Market at a very rapid phase
Image Credit: AI-Generated
The Stock Exchange of Thailand (SET) research team revealed that by June 2025, 854 listed companies accounted for a combined market capitalization of 13.43 trillion baht. Foreign investors held 32.99% of this, a significant drop driven by falling stock prices, net foreign sell-offs, and the delisting of certain companies.
Key Drivers Behind the Drop
The decline was fueled by a 22.19% fall in the SET Index, alongside net foreign sales of 78.68 billion baht in the first half of 2025. Despite these challenges, July 2025 marked a turning point as foreign investors returned to net buying, injecting 16.12 billion baht—their first positive move in ten months. Sector indices also began recovering, signaling cautious optimism.
Sector Breakdown of Foreign Ownership
Foreign investors saw reduced holdings across all industries. Nevertheless, technology, finance, and services remained the top three sectors, collectively representing 75.39% of all foreign investment in Thailand.
Technology sector: Continued to attract the highest foreign interest, though holdings fell 31.23% to 1.85 trillion baht due to steep price declines.
Financial sector: Dropped 9.81% to 887.43 billion baht, still holding steady as the second most attractive segment.
Services sector: Saw a sharp 28.80% contraction, leaving foreign holdings at 598.72 billion baht.
Market Outlook
The overall decline in foreign ownership underscores both global uncertainties and Thailand’s internal market challenges. Yet the rebound in July suggests renewed confidence among international investors, particularly as sector indices show signs of recovery. How sustainable this turnaround will be depends on broader economic stability and investor sentiment in the months ahead.
The study findings indicate that while the Thai market remains diversified, volatility and foreign sell-offs continue to shape its trajectory. Investors, both local and international, will be closely watching upcoming policy decisions and global economic trends to gauge future opportunities.
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