Investor confidence in the Stock Exchange of Thailand over the next three months has risen on expectations of further foreign fund inflows, despite concerns about the Ukraine crisis and US monetary tightening, a capital market group said on Monday.
A survey in late February by the Federation of Thai Capital Market Organizations (Fetco) showed its investor confidence index rose 20.4% to 113.03 but remained in the "neutral zone", after dropping to 93.9 in the previous month.
Foreign investors' confidence jumped by 186% to the "bullish zone" from the "bearish zone", also helped by Thailand's economic recovery and reopening, the Federation said.
"From last month's survey, everyone believed the (Ukraine) crisis could be resolved this month or in the short term and foreign inflows would continue," federation chairman Paiboon Nalinthrangkurn told a new briefing.
Foreign investors have bought about a net 84 billion baht of Thai shares so far this year, after selling a net 49 billion baht in 2021.
Investors view the Thai stock market as a safe haven that will offer more upside this year, Paiboon said, adding recent market falls, driven by global sentiment, should be short term.
"Thai companies' earnings remain strong. Higher inflation is still controllable, while there is fiscal room to help the economy," he said.
A separate survey by the Thai Bond Market Association indicated the central bank would keep its key interest rate at a record low of 0.50% at its next meeting on March 30. The rate has been unchanged since May 2020 to support the recovery.