Stock investors’ confidence for the three months to October remains in neutral territory as concerns over heightening domestic political tension and the economic slowdown drag down optimism.
The investor confidence index (ICI) fell 16% to 85.3 from June’s 101.2, according to the monthly survey by the Federation of Thai Capital Market Organisations (Fetco).
An index below 80 points is considered bearish, 80-119 is neutral and over 119 is bullish.
The ICI survey results showed that the ICIs across all investor groups were in neutral territory. Retail investors’ confidence rose slightly to 87, while that of proprietary traders dropped to 83.3.
Confidence among both local institutional investors and foreign investors dropped to 89.5 and 83.3, respectively.
Negative factors impacting the investor confidence include the domestic political situation and economic slowdown, as well as SET-listed companies’ lower earnings, said Fetco chairman Paiboon Nalinthrangkurn.
The anti-government rally at Thammasat University on Monday night is thought to have risked offending the monarchy through a call for reform, sparking fears that it could trigger violent confrontations between the royalist movement and its opponents.
Students announced a set of 10 demands which included changes in the country’s highest institution, including Section 112 and royal prerogatives.
Investors pin their hopes on domestic economic growth, followed by the recovery of the tourism sector, government policy and progress in producing a Covid-19 vaccine, said Mr Paiboon
He said economic factors warranting further monitoring include earnings reports of listed companies both in Thailand and abroad which may be worse than expected; Thailand’s second-quarter GDP numbers; US-China geopolitical tensions; and a second wave of Covid-19 outbreak in many countries.
Domestic factors which investors are keeping an eye on include the risk that Thailand may be blacklisted by the US Treasury as a manipulator of foreign exchange rates; the phasing out of recent stimulus measures; and the results of the Phase 6 easing of lockdown measures which will allow more foreigners to enter Thailand, said Mr Paiboon.