An ambitious campaign to revive Thailand’s battered stock market is falling flat, as persistent pessimism about the economy accelerates a foreign funds exodus, John Cheng and Anuchit Nguyen reported for Bloomberg News.

Over the past 12 months, foreign investors have withdrawn $4.2 billion from the SET—the highest outflow in Southeast Asia. I Photo: Yu tptw Wikimedia Commons
Seven months after $4.5 billion was injected into the Vayupak Fund, analysts remain perplexed by how little impact it has had on the benchmark SET Index.
The stock gauge has tumbled more than 16% this year, making it the world’s worst performer among the 92 indices tracked by Bloomberg. Over the past 12 months, foreign investors have withdrawn $4.2 billion—the highest outflow in Southeast Asia.
At the heart of weak investor sentiment is a lack of confidence in policymakers' ability to spur economic growth beyond tourism, coupled with deep-rooted concerns over high household debt, political uncertainties, and corporate scandals.
“Most people realize our equities are trading at very cheap valuations, but it’s very hard to convince them to invest in stocks now, given the poor sentiment and weak economic outlook,” said Narongsak Plodmechai, CEO of SCB Asset Management Co.
“The government has demonstrated its serious intention to rescue the stock market, but more urgent steps are needed to support it.”
The faltering rescue plan—which aims to revive the stock market by investing in local firms—serves as a warning to policymakers and investors about the limits of state-run investment funds in stimulating markets. What Thailand’s government does next will determine its standing among global market peers.
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