“Investors’ Confidence remains in ‘bearish’ zone

Government stimulus package and local economic recovery expected

International conflicts and Thailand’s economic slowdown hold back sentiment”

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FETCO Press Release: 8 April 2025

Kobsak Pootrakool, Chairman of the Federation of Thai Capital Market Organizations (FETCO), revealed that the FETCO Investor Confidence Index (FETCO ICI) in March 2025 (conducted during 21-31 March 2025), which anticipated the market condition over the next three months, remains in ‘bearish’ zone at 60.93. The government’s stimulus packet is the most supportive factor, followed by local economic recovery and trend of policy rate cut by the Bank of Thailand’s Monetary Policy Committee. However, international conflicts, local economic slowdown and trade war hold back confidence.

 

Highlights of FETCO Investor Confidence Index surveyed in March 2025 are as follows.

  • Overall FETCO Investor Confidence index for the next three months (June 2025) is in “bearish” zone (40-79 of FETCO ICI Criterion) at 93.
  • Confidence of retail investor is in “very bearish” zone, while that of proprietary investor and foreign investor is in “bearish” zone. Institutional investor’s confidence is in “neutral” zone.
  • Most attractive sector is Banking (BANK).
  • Least attractive sector to investors is Steel and Metal Products (STEEL).
  • Most influential factor driving the Thai stock market is the government stimulus package.
  • Most important factor impeding the Thai stock market is international conflicts.

 

“The survey results in March 2025 show that confidence of retail investor is down 22.4 percent to 38.81, proprietary investors down 20.0 percent to 60.00, institutional investors down 3.7 percent to 111.11 while foreign investors stable at 66.67.

 

The Thai capital market marched through the month of March amid challenges from internal and external factors. Escalating Russia-Ukraine conflicts, U.S. tariffs implementation and an earthquake centered in Myanmar that also rattled Bangkok on 28 March 2025, impact investor’s confidence and business operations in the capital market. However, parties involved have continued to restore confidence to the Thai capital market. At month end, the SET Index closed at 1,158.09, down 3.8 percent from the previous month with an average daily trading volume of THB 38,491 million. Foreign investors were net sellers of THB 21,852 million and their net selling totaled THB 39,978 million year to date.

 

External factors to monitor includes worry over trade war and uncertainty on U.S. tariffs implementation and retaliation, lingering Russia-Ukraine conflicts, and gold price increase. Domestically, investors focus on Thailand’s economic indicators, especially weakening tourism industry and private investment, anticipation on the government’s stimulus package for inbound tourism and impact from the recent earthquake to confidence in several matters.”