FETCO Signals Steady Investor Confidence Backed by Government Stimulus and Capital Inflows
Thai investor confidence remains stable for the next three months, supported by government stimulus and foreign capital inflows despite concerns over international conflicts and trade tensions, according to FETCO's latest survey.
The Federation of Thai Capital Market Organizations (FETCO) has revealed that investor confidence for the next three months remains at a stable level, with investors viewing government economic stimulus measures, foreign capital inflows, and easing global tensions as key supporting factors for the Thai stock market. International conflicts, trade wars, and fiscal concerns continue to present significant headwinds for the investment atmosphere.
On May 11, 2025, Kobsak Pootrakul, chairman of FETCO, unveiled the investor confidence index based on April 2025 surveys (conducted April 20-30). The index for the next three months stands at 114.16, maintaining a stable range. Investors identify government stimulus measures as the strongest confidence booster, followed by capital inflows and signs of easing international tensions. International conflicts emerge as the primary confidence dampener, with trade wars and fiscal concerns as secondary concerns.
The survey results show individual investor confidence increased 21.3% to 90.00, securities company accounts rose 14.3% to 100.00, domestic institutional investors declined 14.4% to 110.00, and foreign investors surged 33.3% to 133.33. The most attractive sector is petrochemicals and chemicals (PETRO), while fashion (FASHION) is least attractive. Government stimulus measures are identified as the strongest market driver, while international tensions represent the greatest drag.
During April's first half, the SET Index gained momentum from easing Middle East tensions and government stimulus announcements. The second half saw volatility from Q1 corporate earnings that disappointed in some sectors, combined with oil and commodity price fluctuations, ongoing geopolitical risks, and concerns about Thailand's weight reduction in MSCI Emerging Markets indices. The SET Index closed April at 1,493.69, up 3.15% from the previous month, with average daily trading volume of 58,688.27 million baht. Foreign investors recorded net selling of 2,513 million baht in April, though year-to-date they have purchased a net 16,638 million baht.
Key external factors warranting attention include the monetary policy directions of major economies, particularly signals from the Federal Reserve under new leadership and the European Central Bank, which will influence foreign capital flows. The unresolved tensions between the United States and Iran also remain a factor affecting price volatility.