Thai investors have significantly increased their trading of depositary receipts (DRs) this year, prompted by a lackluster performance in the domestic stock market, according to the Stock Exchange of Thailand (SET).
As of May 19, the average daily trading volume of DRs—financial instruments that provide exposure to foreign securities—doubled year-on-year to approximately 560 million baht. Meanwhile, the total market capitalization of DRs has expanded by 25% during this period, reaching 36 billion baht.
Rinjai Chakornpipat, Senior Executive Vice President at the SET, noted that investor interest in DRs is driven by a desire for portfolio diversification and risk management. “DRs have become a convenient vehicle for Thai investors to access global equities while mitigating foreign exchange risks through local brokers,” she explained.
The growth in DR trading is supported by both increased demand and supply. In 2023, 16 new DRs were listed on the SET, with Kiatnakin Phatra Securities (KKPS) issuing 10 new DRs and Yuanta Securities (Thailand) issuing 6. This brings the total number of DRs traded on the Thai stock exchange to 118, covering major global stocks and ETFs across Asia, the US, and Europe.
Additionally, the SET recently approved an extension of trading hours for DRs linked to US and European stocks, effective from May 6. This allows Thai investors to trade DRs during both local and overseas market hours, helping to bridge time zone gaps and enabling quicker responses to global market shifts, Rinjai stated.
Nopadon Nimmanpitak, Managing Director at KKPS, highlighted that investor interest in foreign securities has surged since 2020, driven by easier access to international financial information and the appeal of high-growth, innovation-focused companies not listed domestically.
Philip Julian Magnus Finch, KKPS’s Team Head of Equity Solutions, suggested that global investment sentiment could improve in the second half of the year if geopolitical tensions ease, possibly aided by US trade agreements. He noted that deregulation efforts in the US—particularly in finance, banking, and energy sectors—and streamlined M&A policies might stimulate a wave of IPOs in these industries.
However, concerns about rising US public debt persist, with bond yields increasing and the dollar weakening—factors that influence global asset allocation. Despite these mixed signals, US economic growth is expected to stay resilient, with no recession on the horizon. Analysts forecast the S&P 500 to close 2025 at around 6,100 points, offering potential for modest gains. In this climate, KKPS has curated a list of 10 leading global companies available through its latest DR offerings launched just this Thursday.
