The investor confidence index has risen to a record high, with investors expecting support from capital inflows and economic stimulus measures, while dragging factors include international conflicts and political uncertainty.
Mr. Kobsak Pootrakool, Chairman of the Federation of Thai Capital Market Organizations, revealed the results of the FETCO Investor Confidence Index survey in September 2024 (surveyed between 20-30 September 2024), which found that the next 3 months will be ‘very hot’ at 175.64, the highest level since the survey began. Investors see capital inflows as the most confidence-boosting factor, followed by economic stimulus measures from the government and the US Federal Reserve (FED)’s interest rate cut. Meanwhile, the factors that dragged down investor confidence the most are international conflicts, followed by uncertainty in the domestic political situation, and the volatility of the baht. The
FETCO Investor Confidence Index survey in September 2024 summarizes the following results:
? T
he overall confidence index for all investor groups in the next 3 months (December 2024) is ‘very hot’ (index range 160-200) at 175.64.
? Confidence of individual investors And institutional investor groups are in the “hot” category, while the securities company account group and foreign investor groups are in the “very hot” category.
? The most interesting business category is the commerce (COMM) category.
? The least interesting business category is the automotive (AUTO) category.
? The most influential factor for the Thai stock market is capital inflow.
? The most influential factor for the Thai stock market is the international conflict situation.
The survey results as of September 2024 by investor group found that investor confidence in all groups increased. The individual investor group increased by 2.3% to 147.62, the securities company account group increased by 21.2% to 175.00, the domestic institutional investor group increased by 16.7% to 140.00, and the foreign investor group increased by 60
.0% to 200.00.
During September 2024, the SET Index continued to increase. Positive domestic factors include the opening of the Vayuphak Fund worth 150 billion baht, the smooth formation of the government, economic stimulus measures by handing out 10,000 baht to vulnerable groups, the appreciation of the baht, and external factors such as the US Federal Reserve’s (FED) 0.5% interest rate cut for the first time in 4 years and capital inflows. The SET Index at the end of September 2024 closed at 1,448.83, an increase of 6.6% from the previous month. The average daily trading volume in September 2024 was 62,503 million baht. Foreign investors returned to net buying of 28,904 million baht. Since the beginning of the year, foreign investors have been net sellers of more than 94,789 million baht.
International factors to watch include the direction of the US presidential election, the direction of policy interest rates in major economies such as the Eurozone, the UK, and Japan. In addition, China’s major economic
stimulus measures, both in terms of the economy and capital markets, and the tensions in the Middle East, which continue to escalate. Domestic factors to watch include the growth trend of the Thai economy, which benefits from the tourism sector and domestic consumption, the volatility of the baht, which may affect exports, the MPC’s approach in announcing the next policy interest rate, the announcement of listed companies’ performance results for Q3/2024, and the start of investment in the Vayupak Fund.’
Source: Thai News Agency