“Investor Confidence Index Hits ‘Very Bullish’ Zone

Market Sentiment Lifted by Easing Global Conflicts and Capital Inflows

Thai Economic Slowdown and International Conflicts Hold Back Confidence”

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                                                                      FETCO Press Release: 11 June 2026

 

Paiboon Nalinthrangkurn, Chairman of the Federation of Thai Capital Market Organizations (FETCO), stated that the FETCO Investor Confidence Index (FETCO ICI), which measures market sentiment over the next three months based on a survey conducted from May 20 – 31, 2026, has entered the “very bullish” zone at 163.65. The de-escalation of international conflicts was cited as the primary driver of confidence, followed by capital inflows and the government’s economic stimulus packages. Conversely, a domestic economic slowdown was identified as the main drag on investor sentiment, followed closely by ongoing international conflicts and upcoming corporate earnings announcements.

 

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

  • Overall FETCO Investor Confidence index for the next three months (August 2026) is in “very bullish” zone (160-200 of FETCO ICI Criterion) at 163.65.
  • 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 Information & Communication Technology (ICT).
  • Least attractive sector to investors is Fashion (FASHION).
  • Most influential factor driving the Thai stock market is trend of easing international conflicts.
  • Most important factor impeding local economic slowdown.

             

“The May 2026 survey revealed a broad-based increase in investor confidence across all participant categories. Retail investor confidence rose by 34.4 percent to 120.95, while proprietary investor confidence climbed 28.6 percent to 128.57. Institutional investor confidence expanded by 36.4 percent to 150.00, while foreign investor confidence surged by 50.0 percent, reaching 200.00.

 

In May, the SET Index maintained a steady rebound, driven by favorable external factors. These included anticipation of a dovish policy signal from the U.S. Federal Reserve as inflation cooled, a broader rally across global equity markets, and a return of capital inflows to select emerging markets. Additionally, global market anxieties eased regarding trade conflicts and U.S.-China tariff measures. On the domestic front, positive catalysts included the government’s stimulus package under the “Thai Chuay Thai Plus” scheme, and the Bank of Thailand upwardly revising the country’s 2026 GDP growth forecast to 2.1 percent (from 1.5 percent). Furthermore, Moody’s Ratings highlighted Thailand as one of the major emerging market economies best positioned to withstand global economic shocks due to its deep structural resilience. By the end of May, the SET Index closed at 1,568.37, representing a 5.0 percent increase month-on-month. Average daily trading volume stood at THB 66,479 million, with foreign investors acting as net buyers of THB 3,366 million for the month, bringing their year-to-date net buying position to THB 20,004 million.

 

Key external factors to monitor moving forward include geopolitical negotiations to resolve ongoing conflicts in the Middle East, upcoming Fed meetings regarding interest rate trajectories—which will directly influence fund flows to emerging markets—and China’s economic performance, which remains a critical driver for Thai exports and commodities. Domestically, market attention will focus on the implementation of economic stimulus measures and second-half budget disbursements, particularly from the THB 400 billion emergency borrowing decree. Investors will also monitor post-Q1 corporate earnings revisions and evaluate the potential impact of proposed U.S. tiered tariffs across all imports from sixty economies under Section 301 of the Trade Act of 1974, which includes a proposal to increase tariffs on all categories of Thai imports.”