Broker says foreign investors sold 15 billion baht of Thai stocks, advises gradual accumulation of bank shares

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2▲0 ▼3Impact / 5
Summary · why it matters

Pi Securities reported that foreign investors continued to sell Thai stocks, with net selling totaling roughly 15 billion baht since the start of September, and heavy selling occurred yesterday when about 7 billion baht flowed out in a single day. One of the most heavily sold groups was banking, which along with energy and electronics has been one of the standout performers this year, prompting profit-taking in shares such as SCB, KBANK and BBL. KTB's price was less volatile because buying from Vayupak Fund helped support it. Part of the selling pressure stemmed from bank share prices that had risen very strongly earlier, combined with global market uncertainty including the U.S. debt problem, oil prices, inflation concerns and rising bond yields, as well as the direction of U.S. interest rates, where the market is increasingly seeing a chance of a hike, leading some investors to reduce risk and lock in profits first. The recent decline in the SET is therefore not too worrying, because both market fundamentals and domestic buying continue to help support it. As for the banking group, although it may still face profit-taking pressure in the short term and this quarter's earnings may not grow as strongly as before, the overall fundamental picture has not changed, especially the banks' still-strong financial positions, combined with high yield levels and dividend payouts early next year that will provide another supporting factor. Therefore, if bank share prices fall on foreign selling, it is still seen as an opportunity to gradually accumulate rather than to reduce exposure.

Impact on assets 4

Digital Finance & Tokenization▼
Bangkok Bank PCL
BBL
▼ NegativeCapitalrelevance

BBL is among the banking group hit by foreign profit-taking selling after strong gains, with short-term earnings growth seen weaker.

SCB X Public Company Limited
SCB
▼ NegativeCapitalrelevance

SCB is named among the banking shares subject to foreign profit-taking selling after very strong price gains.

Financials▼
Krung Thai Bank Public Company Limited
KTB
± MixedCapitalrelevance

KTB saw less volatile selling pressure because Vayupak Fund buying supported it, though it still faces sector profit-taking and softer quarterly earnings.