Investor mood turns bullish

Investor mood turns bullish

Investor confidence for the next three months, August to October, edged up into bullish territory for the first time in five months amid offshore fund inflows and US monetary policy easing.

The investor confidence index rose by 19.9% to 131.21 from July’s 109.44, according to the monthly survey by the Federation of Thai Capital Market Organizations (Fetco).

An index below 80 points is considered bearish, 80-120 is neutral and over 120 is bullish.

Indices gauging confidence across different groups of investors showed a rise except for that of institutional investors, which was in neutral territory.

Foreign capital inflows and the lower interest rate outlook in the United States are the main factors ushering investor confidence, while the Sino-US trade dispute and the lacklustre earnings outlook of SET-listed companies are the main drags on confidence, said Fetco chairman Paiboon Nalinthrangkurn.

“The result from the interest rate expectation index projects that [Thailand’s] policy interest rate will remain unchanged at 1.75%, while yields of the five-year and 10-year government bonds are not expected to change over the next seven weeks, since Thailand’s economic outlook and inflation still do not require monetary policy easing,” Mr Paiboon said.


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