Foreigners Sell Thailand Stocks as King’s Death Clouds Outlook
Jonathan Burgos
joubertburgos
November 1, 2016 — 6:05 AM WIB Updated on November 1, 2016 — 5:00 PM WIB
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A woman holds a photograph of Thai King Bhumibol Adulyadej as she gathers with others in Bangkok on Oct. 14. Photographer: Dario Pignatelli/Bloomberg
Foreign funds sell net $514 million in October, most in 2016
Economy to go through transition on fragile footing: Nomura
Overseas investors are pulling money from Thailand’s stocks at the fastest pace this year.
Foreign funds sold a net $514 million of Thai equities last month, more than five times as much as from the Philippines, with the bulk of the outflows coming after the Oct. 13 death of King Bhumibol Adulyadej, who had been a source of political stability in a country wracked by numerous coups. While the SET Index has recovered most of its losses from a plunge in the days before the 88-year-old monarch died, valuations remain a concern at a level 22 percent above the 10-year average.
The yearlong mourning period and royal transition threaten to restrain economic expansion, according to Capital Economics Ltd. and Nomura Holdings Inc., while Asian airlines and tour operators said that they’re expecting a slowdown in travel to Thailand. The country’s growth rate trails behind its Southeast Asian peers and hasn’t exceeded 3.5 percent since the start of 2013.