DOI: 10.5176/2010-4804_2.4.276
Authors: Chittipa Ngamkroeckjoti and Thongdee Kijboonchoo
Abstract:
This study investigates whether the Thai & US ratio of interest rate, foreign portfolio investment (FPI), and Stock Exchange of Thailand (SET) indext-1 collectively contribute to both SET index (SETI) and SET property development index (SETPDI) from January 2004 to December 2012. This study uses Multiple Linear Regressions (MLR) through SAS enterprise 4.1 software. The impact of the Thai & US ratio of interest rate, foreign portfolio investment (FPI), and SET indext-1 to the Thai stock market and SETPDI were identified before, during, and after Hamburger crisis. The study found the significant impact of the Thai & US ratio of interest rate, foreign portfolio investment (FPI), and SET indext-1 on stock market indices and it confirmed the correlations suggested by previous studies. Moreover, the findings also provided practical speculative implications for stock investors. SET indext-1 had a higher predictive power than other variables in the SET and SETPDI. The findings of this study provided theoretical implications as well as stock speculation for future researches. Therefore, stock investors need to keep an eye on and pay more attention to the change of SET indext-1 the most.
Keywords: Exchange rate, Foreign Portfolio Investment (FPI), Property stock, Non-Voting Depository Receipt, SET index, Thai & US ratio of interest rate, SET index
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