Institutional investors are expecting Thailand’s stock market to sink during the next three months, whereas individual investors and brokerage companies expect the market to remain steady, according to the Federation of the Thai Capital Market Organization (FETCO).
Voravan Tarapoom, chairperson of FETCO, revealed the result of the organisation’s survey of investor confidence over the next three months.
The confidence index declined to 88.27, from an index of 119.22 compiled during the previous survey. The fall in confidence was observed in all groups of investors.
While individual investors and securities companies expect the market to remain steady in the three months from now, domestic and foreign institutional investors expect a decline.
According to Voravan, investors viewed real estate and construction as the most attractive business category. Natural resource-related businesses were viewed as the most unattractive.
Factors influencing the confidence of investors include the drop in oil price, the European Central Bank’s economic stimulus measures, Japan’s injection of capital into its economy, the Thai government’s economic policies, domestic liquidity and household debt.
The surveyed investors expect the Thai economy to expand by between 3 percent and 3.5 percent this year, driven mainly by the state’s investment and spending.
Andrew Batt, International Group Editor of PropertyGuru Group, wrote this story. To contact him about this or other stories email andrew@propertyguru.com.sg
