Confidence in Thai stock market drops as govt slow in rolling out stimulus measures

[webfact]

Confidence in Thai stock market drops as govt slow in rolling out stimulus measures

By The Nation

 

 

The Investor Confidence Index fell by 21 per cent, the lowest in five months, due to political unrest and delay in the rolling out of economic stimulus measures, the Federation of Thai Capital Market Organisations (Fetco) said.

 

The index for the next three months fell by 21 per cent to 67.52 points, the lowest in five months since March, when confidence among foreign investors was the lowest.

 

Paiboon Narintarangkul, Fetco’s chairman, said the factors causing uncertainty among investors are the local political situation, which is causing the Thai stock market to underperform compared to other Asian indices even though Thailand has been able to successfully contain the spread of Covid-19.

 

“Another factor pressuring the Thai stock market is the government’s slowness in rolling out economic stimuli, such as the Bt400 billion budget to stimulate the economy and Bt500 billion in soft loans,” he said.

 

“We expect the political unrest to pressure the index in the short term as the government is likely to respond positively to protesters’ demand, such as amending the charter. However, it should also accelerate stimulating the economy as soon as possible.”

 

He added that individual and securities investors were concerned about the political unrest, while institutional investors were concerned about the state of the economy.

 

“Foreign investors are also concerned about the US Federal Reserve’s monetary policy and Europe’s economy, which has resulted in a drop in confidence,” he added.

 

“Investors are also prioritising investment in defensive stocks such as food and telecommunications, while reducing investment in banks and tourism stocks.”

 

He went on to say that the Stock Exchange of Thailand (SET) Index was underperforming compared to other Asian indices and has over the year until August contracted by 17 per cent compared to the MSCI Emerging Markets Index, which only contracted by 1.5 per cent.

 

“In August alone, Thai stock index contracted by 1.3 per cent, while other Asian indices, such as Singapore, Indonesia and Vietnam were on the rise," he added.

 

Meanwhile, Ariya Tiranaprakit, executive vice-president of the Thai Bond Market Association, said the market expects the Monetary Policy Committee to maintain its interest rate at 0.5 per cent as the government issues measures to stimulate the economy.

 

Source: https://www.nationthailand.com/business/30394522

 

-- © Copyright The Nation Thailand 2020-09-15

 

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[overherebc]

Does all that mean the baht will get stronger?

[kingstonkid]

2 hours ago, overherebc said:

Does all that mean the baht will get stronger?

I don't think it is so much the baht getting stronger it is that most other economies are weak right now.

[hotchilli]

8 hours ago, webfact said:

Another factor pressuring the Thai stock market is the government’s slowness in rolling out economic stimuli, such as the Bt400 billion budget to stimulate the economy and Bt500 billion in soft loans,” he said

Because they talk the talk but cannot deliver.

[ExpatOilWorker]

Confidence is one thing, but there is still that little can of 1.2 trillion baht we have let the banks kick down the road as SM loans with the debt memorandum. 

Most, if not all, will eventually have to be written off as NPL.

 

https://www.bot.or.th/App/BTWS_STAT/statistics/BOTWEBSTAT.aspx?reportID=829&language=ENG

 

[overherebc]

1 hour ago, kingstonkid said:

I don't think it is so much the baht getting stronger it is that most other economies are weak right now.

I wasn't really being serious.

[Cake Monster]

23 minutes ago, ExpatOilWorker said:

Confidence is one thing, but there is still that little can of 1.2 trillion baht we have let the banks kick down the road as SM loans with the debt memorandum. 

Most, if not all, will eventually have to be written off as NPL.

 

https://www.bot.or.th/App/BTWS_STAT/statistics/BOTWEBSTAT.aspx?reportID=829&language=ENG

 

Interesting to see that NPL on this chart is really small.

Yet Special Mention Loans are soaring to 3 times the amount before Q1.

Anybody for a Massage ?

[Skeptic7]

Sub-Ma-Rine SUBMARINE!!! 

[Slaps]

 

 

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TIT

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Edited September 15, 2020 by Slaps

[Leaver]

On 9/15/2020 at 4:47 PM, Cake Monster said:

Interesting to see that NPL on this chart is really small.

Yet Special Mention Loans are soaring to 3 times the amount before Q1.

Anybody for a Massage ?

I'd prefer a massage to a haircut.  ????  

[Leaver]

On 9/15/2020 at 4:20 PM, ExpatOilWorker said:

Confidence is one thing, but there is still that little can of 1.2 trillion baht we have let the banks kick down the road as SM loans with the debt memorandum. 

Most, if not all, will eventually have to be written off as NPL.

No.  Just raise capital for Thai banks by making visa extensions 1.5 million baht untouched for 12 months.  ????

[fabruer]

For those of you invested in Thai equity or debt, could you please point me to online brokers that you are using?

Would that be international brokers or are you using Thai specific brokers?

 

[ExpatOilWorker]

On 9/15/2020 at 4:47 PM, Cake Monster said:

Interesting to see that NPL on this chart is really small.

Yet Special Mention Loans are soaring to 3 times the amount before Q1.

Anybody for a Massage ?

The debt memorandum expire at the end of September,  so unless they extend it, things will get interesting at the end of Q4.