“Investors’ Confidence returns to ‘bullish’ zone

Fund inflow and Thai economic recovery as supportive factors

Local political situation and economic retreat undermined”

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                                                                      FETCO Press Release: 4 September 2025

 

Kobsak Pootrakool, Chairman of the Federation of Thai Capital Market Organizations (FETCO), revealed that the FETCO Investor Confidence Index (FETCO ICI) in August 2025 (conducted during 20-31 August 2025), which anticipated the market condition over the next three months, moves to ‘bullish’ zone at 120.22. Fund inflow is the most supportive factor to boost confidence, followed by local economic recovery and Monetary Policy Committee (MPC)’s policy rate decision. However, local political uncertainty undermines confidence the most, followed by Thai economic retreat and listed firms’ earnings.

 

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

  • Overall FETCO Investor Confidence index for the next three months (November 2025) is in “bullish” zone (120-159 of FETCO ICI Criterion) at 22.
  • Confidence of retail investor is in “neutral” zone, while that of proprietary, institutional, and foreign investors is in “bullish” zone.
  • Most attractive sector is Bank (BANK).
  • Least attractive sector for investors is Property Development (PROP).
  • Most influential factor driving the Thai stock market is fund inflow.
  • Most important factor impeding the Thai stock market is local political situation.

 

“The survey results in August 2025 show that confidence of retail investor is up 11.0 percent to 96.55, proprietary investors up 67.1 percent to 130.00, institutional investors down 6.1 percent to 130.00 and foreign investors up 100 percent to 133.33.

 

Throughout August, SET Index was under pressure, hurt by slowing economy, lingering Thai-Cambodia conflicts, and political situation following Thailand’s Constitutional Court dismissed suspended Prime Minister Paetongtarn Shinawatra and the entire cabinet over leaked audio call with Cambodia’s Hun Sen. However, the MPC’s interest rate cut by 25 basis points from 1.75 percent to 1.50 percent and anticipation that Fed would cut its policy rate in September helped cushion the downside. At the month end, the SET Index closed at 1,236.61, down 0.46 percent from the previous month with an average daily trading volume of THB 50,672 million. Foreign investors were net sellers of THB 21,816 million. They remain as net sellers of THB 84,384 million year to date.

 

External factors to monitor includes Fed’s monetary policy and its policy rate decision; US-China trade negotiation direction after 90-day trade truce extension. Locally, eyes are on political situation, new government establishment in particular. This could impact on the continuity of policies, budget disbursement and investor’s confidence. Investors will also monitor the ruling of the Supreme Court’s Criminal Division for Holders of Political Positions over former Prime Minister Thaksin Shinawatra’s 14th floor case and ongoing Thai-Cambodia dispute.”