Confidence among foreign investors soars 30%

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Confidence among foreign investors soars 30%
ERICH PARPART
THE NATION

BANGKOK: -- OVERALL investor confidence for the next three months has declined by 14.17 per cent as the sluggish domestic economy has pulled down domestic sentiment, but foreign investors' confidence has risen by 30.01 per cent on the increased tangibility of infrastructure mega-projects, said the Federation of Thai Capital Market Organisations (FETCO).

The survey found the FETCO NIDA Investor Sentiment Index for the three months starting in June had dropped to 88.16 from 102.72 in the previous month's survey. Confidence of proprietary, retail, and domestic institutional investors decreased by 36.36, 15.19 and 14.98 per cent respectively.

However, the sentiment of foreign institutional investors went from "bearish" at 76.92 points to "neutral" at 100 points in the same period. Confidence of proprietary, retail and domestic institutional investors was 77.77, 88.17 and 73.68 points respectively.

The index measures the confidence of all four types of investors and ranges from 0-200 points, where lower than 80 is bearish, 80-120 is neutral and more than 120 is bullish.

"Foreign investors always look for things in the long term, and the increased tangibility in the government's infrastructure projects has contributed to the increase in their confidence in the Thai capital market for the next three months," Voravan Tarapoom, chairwoman of FETCO and chief executive officer of BBL Asset Management, said yesterday.

The survey also found that investors believe petrochemical stocks are the most interesting for the Stock Exchange of Thailand while investment in banking is the least desirable.

"The confidence of domestic investors has declined mainly because of the economic slowdown led by weakened domestic consumption, which is a result of high household debt and tightening purchasing power. Nevertheless, BBL Asset expects the economy to be better in the second half as exports are expected to pick up from the depreciation of the baht along with the expected improvement on the consumption side," she said.

Voravan said domestic consumption should improve in the next three to six months as the level of personal debts such as credit cards should be lower by then and middle-income purchasing power should be able to resume. Meanwhile improved government spending should continue to support the economy in the next period.

BBL Asset has maintained its estimate that gross domestic product will expand by 3-3.5 per cent this year, while expecting the Bank of Thailand's Monetary Policy Committee to hold the benchmark interest rate at 1.50 per cent at its meeting tomorrow.

Kampon Adireksombat, chief economist and strategist at Deutsche Tisco and Tisco Financial Group, said government spending in the first quarter of this year was 30-40 per cent more than in the same period in 2014. The increase in the government budget deficit from Bt250 billion in fiscal 2014 to Bt390 billion in fiscal 2015 is supporting the economy, while domestic consumption and exports are picking up, though unevenly.

He said consumption of non-durable goods was recovering, up by 1.3 per cent in the first quarter when compared to final quarter of 2014. However, consumption of durable goods contracted by 2.3 per cent in the same period.

Non-commodity exports declined but less than before, by just 0.3 per cent, as export of automobiles and hard-disk drives is expanding, but export of commodity products contracted by 6.4 per cent when compared with the previous quarter.

"The recoveries vary across sectors but there are definitely signs that things are improving on the domestic consumption and export fronts," he said.

Tisco Financial Group expects GDP to expand by 0.8 per cent in the second quarter, 1 per cent in the third, and 1 per cent in the fourth after expansion of 0.4 per cent in the first quarter of this year.

Source: http://www.nationmultimedia.com/business/Confidence-among-foreign-investors-soars-30-30261901.html


-- The Nation 2015-06-09

[NeverSure]

"Confidence among foreign investors soars 30%."

[konying]

"Confidence among foreign investors soars 30%."

Yep, right after world bank report of trouble looming, foreigners ran like crazy to invest .

Seriously though hard to take anything serious about Thailand anymore. One day there is one release, next another in total contradiction to the first one

[huanga]

Confidence among foreign investors not to invest in Thailand soars 30%.

OK. Now we got it right!

[BigBadGeordie]

I am 100% sick of these bovine excrement statement and statistics.

Trust me I mean that 110%.

[Rogergreybeard]

Why don't you believe it, the thai people do

[Godders]

increased tangibility of infrastructure mega-projects

Give 'em a straw and they'll clutch at it.

[arfurcrown]

Confidence among foreign investors soars 30%

It seems good, but what is base figure of whatever that this 30% rise in confidence is based upon?

At the best the whole statement is best described as a bucket full of nothing.

Solid waste matter from bovine males certainly baffles the brains of the Homo Sapiens economists.

[i claudius]

Dont forget ,these statements are not made for western ears ,but for the Thai population in general ,who tend to believe any old crap those in charge tell them.

[MockingJay]

Never trust a statistic that hasn't been falsified by yourself...

[tracker1]

Waiting in anticipation for tomorrows figures ! the figures change more then my underwear

[Nobb]

Only because Thaiuland is lowering its baht rate and other benefits!

[elgordo38]

I am 100% sick of these bovine excrement statement and statistics.

Trust me I mean that 110%.

Can the person that massages these numbers please make a house call my back is sore.

[Naam]

what's wrong? only a dozen negative comments based on assumptions without presenting any facts?

[BigBadGeordie]

what's wrong? only a dozen negative comments based on assumptions without presenting any facts?

Why bother with facts when you have statistics.

The government don't use facts so why should anyone else.

Conjecture and supposition, the way to a bright future for Thailand.

[NeverSure]

Statistics prove that 93.7% of all statistics are made up on the spot.

[Cake Monster]

" while investing in banking is least desireable ".

This could not possibly have anything to do with the questionable quality of the Thai Banks debt holdings, could it ?

[hugh2121]

I think it's a typo. Should read foreign investor. ( Currently resident in a mental institute ).

[Naam]

" while investing in banking is least desireable ".

This could not possibly have anything to do with the questionable quality of the Thai Banks debt holdings, could it ?

who has defined this "questionable quality" and where can one get some details?