🐂 Not all bull runs are created equal. November’s AI picks include 5 stocks up +20% eachUnlock Stocks

Thailand to expand state equity fund by up to $4.3 billion to invest in local stocks

Published 08/13/2024, 05:35 AM
Updated 08/13/2024, 05:41 AM
© Reuters. People shop at a market as Thailand is to inject $15.2 bln into economy next year through its digital wallet policy, in Bangkok, Thailand, October 2, 2023. REUTERS/Athit Perawongmetha/ File Photo
PTT
-

BANGKOK (Reuters) - Thailand will increase the size of a state mutual fund by between 100 billion baht and 150 billion baht ($2.8 billion-$4.3 billion) to invest in local stocks, officials said on Tuesday, in a bid to support Asia's worst performing market this year.

The Vayupak Mutual Fund will offer new units to the public by September, Finance Minister Pichai Chunhavajira told reporters. "The project should restore confidence in the capital market", Pichai said, adding the government was also considering other support measures.

Thailand's main stock index has fallen 8.4% so far this year, with foreign investors selling 120 billion baht ($3.4 billion) worth of shares. The market slumped 15% last year, dragged by a sluggish economy, weak currency and political uncertainty.

Lavaron Sangsnit, the finance ministry's permanent secretary, said the new fund units would have a maturity of 10 years and would be registered on the exchange. Other details will be announced later, he added.

The fund will mainly invest in securities listed on the Thai stock market, focusing on companies with good returns, long-term stability and good corporate governance, Lavaron said.

© Reuters. People shop at a market as Thailand is to inject $15.2 bln into economy next year through its digital wallet policy, in Bangkok, Thailand, October 2, 2023. REUTERS/Athit Perawongmetha/ File Photo

The Vayupak fund currently has an asset value of about 322 billion baht and its top holdings include Thailand's largest energy firm, PTT, financial group SCBX and Krung Thai Bank, fund data showed.

($1 = 35.17 baht)

Latest comments

Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.
© 2007-2024 - Fusion Media Limited. All Rights Reserved.