Thai SET dominated by the punters/speculators.

PaulRen's picture

Thailand's SET remains ever more so, a punter distorted market. 

The year starts out here with once again DELTA stock being the most active and up over 12% while trading at a p/e of 70!  With the SET/SEC not designating T2, meaning putting it on cash balance only as they routinely do when other stocks move in much less volatile ways.  On the last trading day of year 2022 DELTA moved up 14.9%.  This is discouraging as soo much speculative big capital moves into this counter -at the expense of other good far more reasonable priced choices! The SET so remains ever more a punter distorted market where it’s difficult for rational investors to excel, as there is so much irrational speculative behavior not reigned in the regulators!

Here below is a graph of how various indexes moved during last year. While the SET benchmark index showed barely any changes during 2022, one can see how the secondary indexes like MAI and sSET well underperformed.  This so even while these indexes represent often higher dividend yielding stocks while often trading lesser demanding p/e valuations.  (SET is the yellow line, MAI is the green and sSET the blue line).  MAI & sSET index represents smaller and mid sized companies which combined economically dominate Thailand!

The one silver lining in this is that many rational investor choices pay dividends averaging twice or more the SET average so in time they do stand out regardless of the punters/speculators and brokers which indirectly promote trading vs. investing.  Long studies have shown again and again how day-trading most often to most people ends up being a "great fool" activity to losses in time.  Members here know which rational fundamental stock picks I chose for outperformance this year.

Happy Near Year 2023!

Paul A. Renaud