Stock investor confidence at 7-month high
text size

Stock investor confidence at 7-month high

Fetco survey shows return of 'bullish' mood as political uncertainty ends

Investor confidence in the Thai stock market has hit a seven-month high boosted by the formation of a new government, although China’s slowing economy is a concern, according to Federation of Thai Capital Market Organizations (Fetco).

His Majesty the King swore in the new 11-party coalition government on Tuesday after a prolonged period of political uncertainty since the general election on May 14.

The August survey by Fetco showed its overall investor confidence index jumped 69.3% to 141.27 from 83.45 in the July survey, moving to “bullish” from “neutral”.

Foreign investors’ confidence alone surged 87.5% from the July survey, moving to the bullish zone from the bearish zone, the federation said in a statement.

The benchmark Stock Exchange of Thailand Index has fallen about 7% so far this year, with foreign investors net sellers of 138 billion baht worth of Thai shares for the year to date. Last year, they were net buyers for the first time since 2016, at 203 billon baht for the full year.

The country may see more foreign fund inflows following eased political uncertainty now that the new government has officially begun work, Fetco chairman Kobsak Pootrakool told a briefing.

The government should introduce measures late this year to stimulate the economy, he said.

“What should be done is driving the tourism sector which does not need large spending,” he added.

On Tuesday, Prime Minister Srettha Thavisin, who is also finance minister, said his government would focus on addressing people’s needs, as it seeks to lift a weakened economy and deliver key campaign promises.

Southeast Asia’s second-largest economy grew 1.8% year-on-year in the April-June period year-on-year, slowing appreciably from 2.7% in the previous three months, and the Bank of Thailand has revised down its 2023 growth projection.

Do you like the content of this article?