FETCO: Thai stock investor “mood” at nine-month low amid COVID-19 surge

Investor confidence in Thai financial markets for the next three months dropped to a nine-month low, dented by a prolonged COVID-19 outbreak, a capital market group said on Tuesday, as the country struggles with a surge in coronavirus cases.

A survey in July by the Federation of Thai Capital Market Organizations (FETCO) showed its investor confidence index slumped to 64.37 from 106.5 in the previous month.

“The confidence index fell further due to the worsening outbreak situation in the country, while the distribution of vaccines has been delayed,” federation chairman Paiboon Nalinthrangkurn told a briefing.

With the current COVID-19 situation, the government’s plan to fully reopen Thailand later this year is likely to be derailed, he said.

Larger and faster fiscal stimulus packages will be necessary to support economic activity, Paiboon said.

Thailand’s main stock index has gained 6per cent so far this year, but foreign investors have sold a net 92 billion baht (US$2.79 billion) of Thai shares over the period.

A separate survey by the Thai Bond Market Association showed the central bank would keep its key interest rate at a record low of 0.50per cent on Wednesday to support the economy.

Agencies