Dr. Santi Kiranand, representative of the Federation of Thai Capital Market Organizations (FETCO), had the following comments regarding the monthly FETCO Investor Confidence Index (ICI) for August 2017
- FETCO Investor Confidence Index (ICI) for the next three months (through October 2017) stood at 104.01 (within the range from 0 to 200), up 3.99% from the previous month’s level of 100.01 with the index remaining in neutral territory.
- The overall ICI increased slightly. The proprietary trading group jumped into bullish territory, while the retail investor ICI rose slightly and the index for local institutional investors fell a bit, but both groups remained in the neutral range as in the previous month. The foreign investor group fell from bullish into neutral territory.
- The sector most attractive to investors was Tourism & Leisure (TOURISM), while Fashion (FASHION) remained the least attractive.
- The one factor both bolstering and dragging down the Thai stock market was the domestic economy.
“Global stock markets have recently moved up slightly with US indices rising to all-time highs due to the overall US economic recovery and the strong performance of listed companies, especially in the technology sector. The world economy as a whole is likely to expand slightly. China’s economy is expected to grow although the government is still in the process of implementing stringent financial policies to control credit risk. As the European economy starts to improve, economic stimulus efforts are likely to be reduced. Meanwhile, investors continue to monitor factors affecting the flow of international capital, and in particular are keeping an eye on the direction of the US policy rate increase and any reduction in the US balance sheet. Also of note is the gradual reduction of Eurozone economic stimulus efforts. Domestically, economic growth and government investment policies are key factors boosting investment.”