8-11-2023 (BANGKOK) Investor confidence in Thailand’s stock exchange plunged dramatically in October according to a widely-followed survey.
The investor confidence index (ICI), which predicts near-term market conditions, dove 31.5% last month to reach 76.87 – its lowest point since February 2021. This represented a shift from neutral sentiment in September to outright bearishness, according to data from the Federation of Thai Capital Market Organizations (FETCO).
All major investor groups reported substantial declines in optimism. Retail traders saw the steepest fall of 45.3%, while confidence among proprietary traders dropped 34% and institutions decreased 31.6%. Even foreign investors, who are usually less reactive, pulled back their confidence by 16.7% compared to September levels.
FETCO attributed the bearish shift to turbulence in global stock markets in the wake of escalating violence between Israel and Hamas in Gaza. Thailand’s SET index mirrored losses overseas as uncertainty and risk aversion increased.
Furthermore, foreign investors extended their selling streak in Thailand, offloading 15.6 million baht worth of shares last month alone. Nearly 171 million baht has been withdrawn from the Thai bourse since the start of 2022.
However, FETCO noted that government economic stimulus, ebbing geopolitical tensions and signs of recovery in Thailand provided some underlying supports for investor sentiment over the longer-term.
