Bangkok, The investor confidence index for August 2024 has been adjusted down to the ‘sluggish’ level. Investors expect supportive factors from economic stimulus measures and the recovery of the Thai economy. The dragging factors are international conflicts and the Fed’s policies.
Mr. Kobsak Pootrakool, Chairman of the Federation of Thai Capital Market Organizations, revealed the results of the FETCO Investor Confidence Index survey in August 2024 (surveyed between 20-31 August 2024). It was found that the FETCO Investor Confidence Index (ICI) for the next 3 months was at 60.40, down to the ‘sluggish’ level. Investors viewed the government’s economic stimulus measures as the most supportive factor for confidence, followed by the recovery of the domestic economy and the recovery of the tourism sector. Meanwhile, the factors that dragged down investor confidence the most were the international conflict situation, followed by the FED’s monetary policy and the domestic economic recession. The
FETCO Investor Co
nfidence Index surveyed in July 2024 yielded the following summary results:
? The overall confidence index for all investor groups in the next 3 months (October 2024) was at the ‘sluggish’ level (index range 40-79) at 60.40.
? Confidence of individual investors The securities company and institutional investor groups are “stable”, while foreign investor confidence is “very sluggish”.
? The most interesting business category is Tourism and Recreation (TOURISM).
? The least interesting business category is Automotive (AUTO).
? The most influential factor for the Thai stock market is the government’s economic stimulus measures.
? The most influential drag on the Thai stock market is the international conflict situation.
The survey as of July 2024 by investor group found that individual investor confidence fell 11.3% to 83.10, the securities company group rose 96.9% to 112.50, domestic institutional investor confidence fell 17.4% to 90.91, and foreign investor confidence fell 55.6% to 33.33.
In July 2024,
the capital market received good news from its upward adjustment, benefiting from declining US inflation, which affected expectations that the Fed would cut policy interest rates. Including the Stock Exchange’s implementation of Uptick rules for short selling and the progress of the Digital Wallet project, despite being affected by the World Bank’s downward revision of Thailand’s economic growth forecast for 2024 to 2.4% from the previous estimate of 2.8% in April 2024 and the governance situation of listed companies. The SET Index closed at 1,320.86 at the end of July 2024, up 1.5% from the previous month. The average daily trading volume in July 2024 was 44,162 million baht. Foreign investors sold a net 1,576 million baht. Since the beginning of the year, foreign investors have continued to sell a net 117,559 million baht.
International factors to watch include the Fed’s monetary policy in reducing the policy interest rate, the direction of the US presidential election after former US President Donald Trum
p was assassinated and Joe Biden announced his withdrawal from the US presidential race, the results of Chinese capital market measures that will boost investor confidence, such as controlling short sell, and the conflict situation in the Middle East. Domestic factors to watch include the performance of listed companies, the implementation of the 10,000 baht digital wallet project, and the political situation that is awaiting the Constitutional Court’s decision.
Source: Thai News Agency