Investors’ Confidence retreats to “bearish” zone
Government stimulus package and fund inflow to help shore up sentiment
International conflicts and inflation weigh”
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FETCO Press Release: 11 March 2025

Kobsak Pootrakool, Chairman of the Federation of Thai Capital Market Organizations (FETCO), revealed that the FETCO Investor Confidence Index (FETCO ICI) in February 2025 (conducted during 20-28 February 2025), which anticipated the market condition over the next three months, retreats to ‘bearish’ zone at 66.11. The government’s stimulus packet is the most supportive factor, followed by fund inflow and policy rate cut by the Bank of Thailand’s Monetary Policy Committee. However, international conflicts, inflation situations and local economic slowdown weigh on sentiment.

Highlights of FETCO Investor Confidence Index surveyed in February 2025 are as follows.
• Overall FETCO Investor Confidence index for the next three months (May 2025) is in “bearish” zone (40-79 of FETCO ICI Criterion) at 66.11.
• Confidence of retail investor, proprietary investor and foreign investor is in “bearish” zone while that of institutional is in “neutral” zone.
• Most attractive sector is Banking (BANK).
• Least attractive sector to investors is Automobile (AUTO).
• Most influential factor driving the Thai stock market is the government stimulus package.
• Most important factor impeding the Thai stock market is international conflicts.

“The survey results in February 2025 show that confidence of retail investor is down 37.9 percent to 50.00, proprietary investors up 25.0 percent to 75.00, institutional investors up 3.8 percent to 115.38 and foreign investors down 33.3 percent to 66.67.

In February, SET Index continued to retreat, hurt by several factors, such as anticipation on intensifying trade war as a result of U.S. President Donald Trump’s tariffs imposed on Canada, Mexico and China, MSCI stock portfolio adjustment on Thai equity market, selling pressure from Long-Term Equity Funds (LTF) redemption and lower-than-expected earnings of listed companies despite MPC’s rate cut by 25 basis points to 2.0 percent. At month-end, SET Index closed at 1,203.72, down 8.4 percent from the previous month with an average daily trading volume of THB 52,041 million. Foreign investors were net sellers of THB 6,623 million and have cashed out THB 18,127 million year to date.

External factors to monitor include trade war direction and its impact to Asia, and Russia-Ukraine ceasefire agreement. Locally, eyes are on fiscal policy aimed to boost the economy and capital market such as plans to launch new funds to transition Long-Term Equity Funds (LTF) into a Thai ESG (Environmental, Social, and Governance) funds.”