Thailand’s Oct Investor Confidence Returns to “Neutral” Zone, Backed by Tourism Recovery

Thailand’s investor confidence in October, which anticipated the market condition over the next three months, was at 108.86, up 60.5% from a month earlier, coming back to the “neutral” zone, according to the Federation of Thai Capital Market Organizations (FETCO) on Wednesday. 

The rebound of tourism is seen as the most encouraging sign for investors, followed by the expectation that the US Federal Reserve will slow the pace of interest rate hikes and the local economic recovery. However, investors are most worried about the future path of inflation, Covid-19, and the Fed’s interest rate hike policies.

FETCO chairman Kobsak Pootrakool forecasts a SET Index of 1,685 by year’s end, as foreign investors continue to pour capital into Thailand’s stock market as they flee to safer markets in Southeast Asia.

Results from a survey conducted in October 2022 reveal that the tourism and leisure sector is the most attractive to Thai and international investors, while the petrochemicals and chemicals industry is the least interesting. Meanwhile, banks are favored by institutions and securities. Uncertainty over the Fed’s interest rate hikes is the biggest threat to the SET.