Bangkok: Analysts and investors are advocating for strategies in foreign stock investments as the Stock Exchange of Thailand (SET) encourages investors to explore opportunities through Depositary Receipts (DRs).
According to Thai News Agency, Dr. Rinjai Chakrapipat, Deputy Managing Director of SET, highlighted during a seminar titled ‘Investment Strategy in Foreign Stocks’ that DRs, currently registered in SET 89, are gaining traction. SET plans to expand this further by adding 30 new securities in May, offering investors more choices. The market value of DRs has surged to 35,000 million baht in the first quarter of 2025, marking a 19 percent increase from 2024. As part of these developments, a conversion from DRx to DR is set for May 6, enabling trading throughout the day and night.
Dr. Niwet Meewachirawarakorn expressed concerns over the prolonged trade war, advising investors to maintain cash reserves due to heightened risks. He emphasized the need for the Stock Exchange of Thailand to assess the stability of securities companies handling DRs. Dr. Niwet shared his investment strategy, focusing on diversifying his portfolio by investing in large stock markets with high returns, such as Vietnam, Thailand, and other global markets, stressing the importance of selecting the right country, timing, and stocks.
Dr. Mana Nimitrwanich from Krungthai Bank discussed the unpredictability of Trump’s policies and their impact on global trade. He noted the potential for the Federal Reserve to lower interest rates in response to economic recession concerns. European DRs remain appealing due to potential further interest rate cuts by the European Central Bank. Japan’s economic resilience also makes it a viable option during these uncertain times.
Dr. Jitipol Pruksamethanan from Finansia Syrus Securities pointed out the International Monetary Fund’s warning of global economic uncertainty. The US economy’s trajectory might hinge on ongoing tax negotiations, particularly with China. He advised against selling off large stocks prematurely and identified DR markets in Vietnam and Europe as promising.
The seminar also cautioned about stagflation risks, where economic stagnation coincides with inflation, complicating economic management during the trade war. Countries might unite against the US, potentially escalating the situation and affecting the global economy.