“Investor Confidence turns ‘very bullish’

Fund Inflows and Thai political situation lift Thai Market sentiment

International conflicts and political uncertainty cloud investor sentiment”

—————————————————————————————————————————-

                                                                      FETCO Press Release: 4 February 2026

 

Kobsak Pootrakool, Chairman of the Federation of Thai Capital Market Organizations (FETCO), stated that the FETCO Investor Confidence Index (FETCO ICI) for January 2026—surveyed between 21–31 January 2026 and reflecting market expectations over the next three months—rose into the very bullish zone at 165.37. Fund inflows were identified as the most significant factor supporting investor confidence, followed by the domestic political situation and the U.S. Federal Reserve’s monetary policy. Meanwhile, international conflicts, domestic political uncertainty, and economic conditions in the Eurozone were cited as key factors weighing on sentiment.

 

Highlights of FETCO Investor Confidence Index surveyed in January 2026 are as follows.

  • Overall FETCO Investor Confidence index for the next three months (April 2026) is in “very bullish” zone (160-200 of FETCO ICI Criterion) at 37.
  • Confidence of retail, proprietary, and institutional investors is in “bullish” zone while that of foreign investors is in “very bullish” zone.
  • Most attractive sector is Banking (BANK).
  • Least attractive sector to investors is Property Development (PROP).
  • Most influential factor driving the Thai stock market is fund inflows.
  • Most important factor impeding the Thai stock market is international conflicts.

 

“The January 2026 survey showed that retail investor confidence increased by 26.3 percent to 129.66, while proprietary investor confidence rose by 7.1 percent to 150.00. In contrast, institutional investor confidence declined by 8.3 percent to 122.20, while foreign investor confidence remained unchanged at 200.00.

 

During the first half of January, the SET Index traded within a narrow range of 1,230–1,285 points, before breaking above the 1,300-point level in the latter half of the month. The rally was driven by a global “Sell America” trend, as investors reduced exposure to U.S. assets following tensions between U.S. President Donald Trump and Europe over the Greenland issue. Gold prices surged during the period, while the Thai baht appreciated against the U.S. dollar, encouraging fund inflows into the Thai capital market. In January, foreign investors were net buyers of THB 4,345 million. The SET Index closed the month at 1,325.62 points, representing a 5.24 percent increase month-on-month. Average daily trading value stood at THB 46,496 million.

 

Key external factors to monitor include the risk of trade wars and U.S. tariff measures that could affect listed companies, particularly those in the import and export sectors; policy rate directions in major economies, which may influence capital flows into emerging markets; heightened geopolitical risks and trade tensions between the U.S. and Europe; and escalating conflicts in the Middle East, including the possibility of U.S. military action against Iran, which could push up energy prices while pressuring the global economy.

 

Domestically, political developments remain a critical factor, including election outcomes, the formation of a new government, and the constitutional referendum. Thailand’s economic growth is projected at only 1.5–1.8 percent in 2026, marking the lowest level in several years. Additionally, investors will closely monitor fourth-quarter earnings results of listed companies, which will serve as an important indicator for the Thai stock market’s direction.”