Bangkok: The Federation of Thai Capital Market Organizations (FETCO) has announced that the Investor Confidence Index (ICI) for the upcoming three months is at a ‘very hot’ level. This marks the second consecutive month the index has remained at this level, standing at 160.66. Investors attribute their confidence to the government’s economic stimulus measures, interest rate cuts by the Monetary Policy Committee (MPC), and a recovery in the tourism sector. However, concerns about inflation, international conflicts, and domestic political uncertainty continue to weigh on their outlook.
According to Thai News Agency, the FETCO survey conducted in October 2024 revealed that the overall confidence index for all investor groups remains robust, with individual investors, securities company account groups, and institutional investors showing ‘hot’ confidence levels. In contrast, the confidence among foreign investors is considerably higher, rated as ‘very hot.’ The tourism and recreation sector is deemed the most at
tractive, while the automotive sector is the least appealing for investors.
The survey highlighted that government economic stimulus measures are the most influential factors positively impacting the Thai stock market. Conversely, inflation remains the critical concern affecting investor sentiment. Within the investor groups surveyed, confidence among individual investors dropped by 6% to 138.71, securities company account groups fell by 14.3% to 150.00, while domestic institutional investors remained steady at 140.00. Foreign investor confidence declined by 10% to 180.00.
During October 2024, the Stock Exchange of Thailand (SET) Index experienced fluctuations, initially moving within a narrow range before rising in mid-month due to the MPC’s decision to lower the policy interest rate by 0.25% to 2.25%. However, profit-taking by foreign investors, influenced by expectations that the U.S. Federal Reserve would not hasten interest rate reductions and uncertainties surrounding the U.S. presidential election, l
ed to a subsequent decline. The SET Index closed at 1,466.04 at the end of October, representing a 1.2% increase from the previous month. The average daily trading volume was recorded at 54,750 million baht, with foreign investors net selling 27,968 million baht.
External factors to watch include escalating tensions in the Middle East, potential implications of the U.S. presidential election results on November 5, 2024, and the direction of U.S. trade policy, which could introduce volatility in global stock markets. Additionally, the recovery of the Chinese economy following significant economic stimulus measures is a focal point. Domestically, the Thai economy’s recovery is expected to be supported by tourism and exports, trends in inflation and economic growth, and the performance of listed companies in Q3/2024, aligning with domestic economic expansion.
Mr. Kobsak Pootrakool noted that the SET Index is projected to reach 1,494 by the end of 2024, with expectations to climb to 1,614 in 2025, driven by glo
bal interest rate reductions. He emphasized that forthcoming positive developments would further bolster the Thai capital market.