Investor confidence in the Thai stock market has hit an 11-month low on concerns about the US Federal Reserve's fast monetary tightening policy, global inflation and Covid-19 infections, a capital markets group said on Thursday.
A June survey by the Federation of Thai Capital Market Organizations showed its overall investor confidence index fell to 64.57 from 83.91 in a May survey, slipping into the "bearish zone" for the first time in 11 months.
Foreign investor confidence, already in the "bearish zone", was also dented by Thailand's plan to tax securities trades, the group said.
However, a tourism recovery and capital inflows provided some support, chairman Kobsak Pootrakool told a news conference. Foreign investors have bought a net 114.6 billion baht (US$3.15 billion) of Thai shares so far this year.
The group forecast the main Thai stock index could rise to 1,646 points by the end of the year from 1,544 on Thursday.
The central bank is expected to gradually raise its policy interest rate by a quarter point at each at its three remaining meetings this year, taking the rate to 1.25% from a record low of 0.50%, Kobsak said.
"Interest rates can be hiked but not as much, letting the (baht) currency weaken a little to help keep the economy going," he added.