Bangkok: The investor confidence index has been adjusted down to the ‘sluggish’ level due to pressure from the Thai political situation and international conflicts. Investors are hoping that the Fed’s policies and economic stimulus measures will help support the economy, while keeping an eye on the outcome of the trade agreement negotiations between the United States and its trading partners.
According to Thai News Agency, Dr. Kobsak Pootrakool, Chairman of the Federation of Thai Capital Market Organizations, revealed the FETCO Investor Confidence Index for June 2025, which found that the FETCO Investor Confidence Index (ICI) for the next 3 months has adjusted back to the ‘sluggish’ level at 58.45. Investors viewed the FED’s holding of interest rates as the most confidence-boosting factor, followed by the government’s economic stimulus measures and clarity of the domestic political situation. The factors that dragged down investor confidence the most were the domestic political situation, followed by international conflicts and capital outflows.
The FETCO Investor Confidence Index surveyed in June 2025 has the following conclusions: The overall confidence index for all investor groups in the next 3 months (September 2025) is ‘sluggish’ (index range 40-79) at 58.45. Confidence in individual investors, institutional investors, and foreign investors is ‘sluggish’, while the securities company account group is ‘very sluggish’. The most interesting business category is the banking category (BANK), whereas the least interesting business category is the automotive category (AUTO). The most influential supporting factor for the Thai stock market is the FED’s interest rate maintenance, while the most influential dragging factor for the Thai stock market is the domestic political situation.
The survey results in June 2025 by investor groups found that the confidence of individual investors decreased by 14.2% to 50.70, the securities company account group decreased by 61.9% to 28.57, the domestic institutional investor group decreased by 42.1% to 63.64, and the foreign investor group decreased by 55.6% to 66.67. In June 2025, the Thai capital market faced severe volatility from the conflict between Iran and Israel, the border conflict between Thailand and Cambodia, and the domestic political situation, which affected investors’ concerns about the stability of the government. Meanwhile, the Fed meeting resolved to maintain the interest rate at 4.25% – 4.50% and the MPC resolved to maintain the policy interest rate at 1.75% as the market expected. The SET Index at the end of June 2025 closed at 1,089.56, down 5.19% from the previous month. The average daily trading volume in June 2025 was 39,663 million baht. Foreign investors sold a net 7,941 million baht. Since the beginning of 2025, foreign inve
stors have sold a net 78,690 million baht.
International factors to watch include the outcome of the trade agreement negotiations between the United States and its trading partners, the conflict situation in the Middle East, which has an impact on oil prices and may expand the impact on the global economy. Domestic factors to watch include the progress of the trade negotiations between Thailand and the United States, the fragile stability of the government after the Constitutional Court accepted the petition for consideration and ordered the Prime Minister to cease performing his duties on July 1, 2025, which will be an obstacle to driving important economic policies and affect the long-term investment planning of the private sector, including the tendency of the Thai economy to slow down in the second half of the year due to lower exports and the number of foreign tourists.