Dr. Kanate Wangpaichitr, Secretary-general of the Federation of Thai Capital Market Organizations (FETCO), commented on the release of the FETCO Investor Confidence Index for February 2017 that, “The overall Investor Confidence Index (ICI) for the next three months rose into bullish territory for the first time in five months. While equity markets around the world remain highly volatile, the domestic economy is likely to continue growing due to the stimulus policies of the government.”  Details follow:

  • FETCO Investor Confidence Index (ICI) for the next three months (through April 2017) stood at 120.59 (within the range from 0 to 200), jumping 17.09% from last month’s 102.99, with the index rising into bullish territory.
  • The confidence indices for all investor groups rose, with the local institutional and foreign ICI’s rising into the bullish range while retail investor confidence remained in neutral territory.
  • The Construction Services (CONS) sector remained the most attractive for investors, while Banking (BANK) drew the least investor interest.
  • The factor most instrumental in boosting the Thai stock market was the performance of listed companies in fiscal quarter 4/2016, while volatile capital flows proved to be a drag on the market.

In Q1/2017, the overall global economy is growing gradually, but a number of risks need to be monitored: the attitude of the new United States administration with regard to economic policy and international free trade remains a question; the consequences of Brexit will become more apparent this quarter; Europe may face the risk of regional political instability; the volatility ensuing from changes in the monetary policies of the major economies such as interest rate hikes by the US Federal Reserve (FED) based on the US economic conditions; Chinese measures to restrict capital outflow; and Japan’s maintaining of its long-term expansionary monetary policy and yield curve control policy in its attempt to create monetary stability.

Nevertheless, although the global situation is still faced with a number of vulnerabilities, Thailand’s economy continues to benefit from the stimulus packages and private sector purchasing power at the end of last year. Moreover, large public infrastructure investments will help inject capital into the economy.

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FETCO Investor Confidence Index Report
Press Release