Thai Stock Investors’ Confidence Rises in June on Hopes of a Smooth Transition to New Government

Investor confidence in Thailand’s stock market improved slightly in June, the Federation of Thai Capital Market Organizations (Fetco) said on Thursday, as investors anticipated a swift transition to a new government and a continuous uptick in tourism and economic activity.

A June survey by Fetco showed its overall investor confidence index rose to 81.62 from 77.70 in May, moving back to the “neutral zone”.

The confidence of foreign investors rose 33% from the previous month, according to a survey.

However, foreign investors have sold around 110.5 billion Thai baht worth of shares since the beginning of the year as political instability has caused the main stock index to fall about 11%.

After national elections in May, the Thai parliament will vote on July 13 for a new prime minister to form the next government.

“The market is hoping for a stable government. It likes stability,” Fetco chair Kobsak Pootrakool told a briefing.

Kobsak added that the central bank was likely to boost its benchmark interest rate again at its next meeting on August 2, by a quarter point to 2.25%, as the tourism sector improved.