Paiboon Nalinthrangkurn, Chairman of the Federation of Thai Capital Market Organizations (FETCO), commented on the March 2019 FETCO Investor Confidence Index (ICI):

During February, the Stock Exchange of Thailand (SET) Index increased slightly with fluctuations during the month reflecting political and election news.  Investment trends for the next three months show investors’ positive expectations have been bolstered by the domestic political situation and the scheduling of elections; the performance of listed companies; and expectations for Thai economic growth which, nevertheless, may be impacted by the global economic slowdown.  At the same time, some investors are concerned about the outcome of trade negotiations between the United States and China, despite their current positive direction and the government’s stability after the election.  Global economic factors that need to be monitored include the US Federal Reserve Bank considering an end to its balance sheet size reduction and possible interest rate hikes at the next Federal Open Market Committee meeting; European Central Bank (ECB) meeting results that are likely to maintain monetary policy and delay any interest rate hikes; discussions of the BREXIT agreement with the EU, which has a March 29 deadline; the forecast reduction of EU GDP from 1.9% to 1.3%; and the results of the Chinese economic policy meeting in March.  Investors found the Banking (BANK) sector most attractive for investing, while Property Development (PROP) drew little interest from investors.