Investor Confidence In Thai Stock Market Strong Amid Stimulus, Rate Cut - FETCO

 

BANGKOK, Nov 5 (Bernama) -- Investor confidence in Thailand’s stock market remained strong in October, supported by the government's economic stimulus package and the Bank of Thailand's recent policy rate cut, according to the Federation of Thai Capital Market Organizations (FETCO).

FETCO chairman Kobsak Pootrakool said the Investor Confidence Index, which forecasts market conditions over the next three months, was at 160.66 in October. 

Kobsak said although this marks a slight decrease from September's 175.64, the index has remained in the "very bullish" zone for the second consecutive month.

"The government’s economic stimulus package is the most significant supportive factor, followed by the Bank of Thailand’s policy rate cut and the recovery in tourism," he said in a statement on Monday.

According to Kobsak, October 2024 survey results showed a dip in confidence among various investor groups: retail investors fell by 6 per cent to 138.71, proprietary investors declined by 14.3 per cent to 150.00, foreign investors dropped by 10 per cent to 180.00, while institutional investors remained steady at 140.00.

However, Kobsak noted that confidence was impacted by inflation, international conflicts, and local political uncertainties.

In the first half of October, Thailand’s SET Index moved within a narrow range, before responding positively to the central bank's 25 basis point rate cut to 2.25 per cent.

"Profit-taking by foreign investors occurred as the market anticipated a slower pace of interest rate cuts, compounded by uncertainty surrounding the U.S. presidential election," he added.

Kobsak said inflation, economic growth, and financial stability, a rebound in tourism and exports, are expected to strengthen the Thai economy, which are also critical factors affecting the central bank’s next interest rate decision.

-- BERNAMA