The purpose of this post is to simply and clearly educate you, the reader, about the Thai Stock Market as well as how the banks in Thailand work. There are many misconceptions out there, and a lot of it comes from language barriers and misinformation. I’ve been trading on the Thailand Stock Exchange since 2004, and I’ve also been making international transfers to and from Thai banks at least a few times a year. For the newcomer, I’ll say right now that it is very easy to transfer funds internationally from here. If someone tells you otherwise, it’s probably because they aren’t following one relatively simple rule: The name on both the Thai and international account must be the same. If you have different names, the system will filter you to check for money laundering, fraud, etc.
The Thai Stock Market
The Thailand Stock Exchange has seen its ups and downs as all markets have. Many investors view the Thailand Stock Exchange only for the large cap stocks, which I believe misses out on the real value stocks hidden in the low to mid-cap range. Currently, the SET is on a bull run, and small to mid-caps are where a lot of the smart retail investors are trading. If you’re wondering where to invest in 2013, you should give Thailand a look as this bull run isn’t over yet. It’s one of the hottest markets around at the moment, and there are tons of stocks that pay dividends in the 5% and above range.
My Current Stock Portfolio:
SITHAI – This company manufactures home and office products. After going on a huge run recently, it has been a laggard behind the SET. It’s ready to catch up, and also offers a nice 1.1 baht dividend in the meantime.
DEMCO - Quickly becoming the industry leader in alternative energy, DEMCO is now well positioned in Thailand within the green energy sector. They’ve been awarded projects that run for the next few years, and profits will only keep on growing in this sector. If you’re looking for stocks that pay dividends, this is an attractive pick.
PTT - This is Thailand’s largest energy and resources company on the Thai Stock Market. They are expanding internationally and have strong management. They know where to invest in 2013 and beyond, and pay a strong dividend of not less than 25% of net income.
Where to Invest in 2013?
I get asked that question on a weekly basis. Many people are beginning to worry that the Thailand Stock Exchange is too hot, but I beg to differ. There is plenty of room left in this bull market, and I see the SET surpassing 1700 without fear. Institutional money is still flowing in at high rates, so I’m not the only one who knows that this run isn’t over.
One of the most attractive aspects for me is the amount of high quality stocks that pay dividends on the market. These funds can get automatically transferred to your international bank as long as both accounts are in your name. Once you get educated about the relatively simple rules in Thailand, you’ll enjoy all that the Thai Stock Market has to offer.