Thai stocks lose foreign buying as US bond yields climb

Thai stocks have lost much of their foreign buying support this year as higher US bond yields pull global money back into American debt. Accumulated net buying by foreign investors has dropped to about 10 billion baht, down from a peak of 60-70 billion baht around mid-year, the Bangkok Post reported on Friday, November 13.

The figures come from the Stock Exchange of Thailand (SET). Its president, Asadej Kongsiri, said net buying had eased from around 18 billion baht in October to about 10 billion baht now, after US bond yields climbed above 5% towards the end of the third quarter.

Why foreign money is leaving Thai stocks

When safe US government bonds pay more than 5%, many global funds see less reason to take on the extra risk of emerging-market shares. That shift has been visible across Asia, as covered in our report on outflows from Asian equities.

Chatchai Thisadoldilok, executive vice-president and head of research at the SET, said global volatility and selling in technology and artificial intelligence shares had also weighed on the market. Worries about valuations, returns on huge AI and data centre spending, and regulatory uncertainty pushed investors to rotate from growth stocks to value stocks, he said. Our earlier story on the slide in tech stocks looks at that global sell-off.

Foreign ownership still at a record

Despite the slowdown in buying, foreigners have not abandoned the market. They still hold a record 6.9 trillion baht of Thai equities, equal to 37% of total market capitalisation.

Mr Asadej said this high level of ownership shows that foreign investors continue to focus on company fundamentals when making decisions, rather than reacting only to short-term moves.

How the SET performed in October

The SET Index closed October at 1,518.59 points. That was 2.6% lower than a month earlier but still 20.6% above the level at the end of 2025.

Thai shares linked to the AI supply chain came under pressure. Even so, the SET fell less than several regional markets. Resources and financials were among the best-performing sectors last month, while high-dividend banking and energy shares, along with ESG stocks, held up relatively well.

Key numbers from the exchange:

• Average daily trading value on the SET and MAI reached 66.4 billion baht in October, up 68.2% year-on-year.
• Foreign investors made up 58.7% of turnover.
• Foreigners were net sellers of 6.67 billion baht in October.
• Over the first 10 months, they remained net buyers of 18.2 billion baht.

Local investors may step in

Looking towards the end of the year, the exchange expects domestic investors to provide support. It pointed in particular to investors drawn to tax-saving products such as Thai ESG funds, and Mr Chatchai said the recent correction had made valuations more attractive to local investors looking for tax benefits.

He also pointed to the wider economy. The Bank of Thailand has raised its 2026 growth forecast to 2.4%, which he attributed to stronger exports and investment. Investment applications to the Board of Investment have also risen substantially.

Other factors to watch, according to the SET, include third-quarter company earnings, the tourism high season, inflation, US interest rates and geopolitical risks. For Phuket and other resort areas, the high season is the period that matters most. Consumer mood is another signal, as our report on Thai consumer confidence shows.

New industries on the exchange

The SET is also trying to help emerging industries raise money. Mr Asadej said clearer and faster regulations were helping to speed up investment in data centres and artificial intelligence.

The exchange is discussing fundraising opportunities with technology and sensor companies and is supporting listed firms in seven targeted industries worth more than 5.4 trillion baht in total.

What it means for Thai stocks

In short, the foreign buying that helped lift the market earlier in the year has faded, but it has not turned into a large-scale exit. As long as US yields stay high, overseas funds may remain cautious. The outlook for the rest of 2026 will depend on whether local buying, company earnings and the tourism season can fill the gap.

Image: The Stock Exchange of Thailand head office in Bangkok, the market where Thai stocks are traded. Photo by Yu tptw, CC BY-SA 4.0, via Wikimedia Commons.