Investors remain confident in Thai stock market despite foreign capital outflow

 

 

BANGKOK, 12th June 2018 (NNT) - Despite the recent foreign capital outflow, investors have expressed confidence in the Thai stock market, after first quarter growth reached a five-year high of 4.8%. 

Paiboon Nalinthrangkurn, Chairman of the Federation of Thai Capital Market Organizations (FETCO), revealed today that the investor confidence index (ICI) for the next three months has remained at 91.66 for a second straight month. Therefore, he believes investors remain confident that capital markets will benefit from Thailand’s continued economic growth, which he attributed to higher government spending and steady tourism. 

Paiboon suggested that the recent correction in the Thai stock market was due to the interest rate hike by the US Federal Reserve. Meanwhile, fears of trade barriers between the United States and China have begun to subside, after progress in negotiations that prompted the US to postpone its announcement of tariffs on Chinese imports. 

Domestically, the certainty of the election date is an important factor in investor confidence, and the Monetary Policy Committee is expected to maintain the benchmark interest rate at 1.5% to support economic growth and coincide with the current inflation rate. 

Most investors believe the Thai stock market in the second half of the year will rebound on positive economic indicators and may reach 1,850 points.

 

-- nnt 2018-06-12

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