Stock investor confidence marred by Chinese economic slump

BANGKOK, 10 February 2016 (NNT) – The slowing economy in China has shaken the confidence of stock investors even though analysts believe the Thai stock index will be able to reach the 1,500-point mark.

The Federation of Thai Capital Market Organizations has released its latest report on investors’ sentiment towards the Thai stock market, indicating that the confidence index for the next three months edged down 3.3 percent from 74.35 to 71.90. The downtrend has been seen for five months in a row, with the Chinese economic slowdown cited as the main factor.

The confidence index of foreign institutional investors also plummeted by 70 percent to 10, which is considered extremely bearish. Nonetheless, the index of retail investors posted the highest rise of 10.53 percent to 86.68, thanks to the recovering domestic economy. The most attractive sector was banking, whereas the least was energy.

Mr Kuntra Ladavalya Na Ayudhya, Executive Director of Finansia Syrus Securities Plc, has set a target of the Thai stock index this year at 1,500 points under the condition that the government has clear investment plans in place and the annual GDP growth reaches 3 percent. Otherwise, he said the stock index could slip and test the support level at 1,200.


-- NNT 2016-02-10

I may be wrong but if the highest and most attractive sector was banking doesn't this show that Thais are hurting more financially and borrowing more money?

Less risk for the banks here as they are paying very low interest rates , their exposure on a global scale would seem to be limited,where as other countries banks pay a higher interest rate and are exposed to global markets with more risk, many banks in Europe, Australia,and usa have taken large hits on their value in the last weeks and days,

Banks here have been slow to lend monies last year and has continued so far this year, (part of the reason maybe)

You can predict anything with hypothetical conditions. I predict the Thai market will hit 1,600 when the GDP rises to 5%.

Not very useful.

I am really amazed at the performance of the SET. Other Asian markets Japan in particular really pop downwards and the SET only moves a couple points into the red and the baht has been on a real tear lately getting stronger by the day. Is the strength really here to back this up or are the economic levers being pulled to produce a "goldilocks" effect. Only time will tell. If its a goldilocks effect the financial firemen better get out the inflatable thingee

I am really amazed at the performance of the SET. Other Asian markets Japan in particular really pop downwards and the SET only moves a couple points into the red and the baht has been on a real tear lately getting stronger by the day. Is the strength really here to back this up or are the economic levers being pulled to produce a "goldilocks" effect. Only time will tell. If its a goldilocks effect the financial firemen better get out the inflatable thingee

The imbalance with China and the USA and the amount of cash in USA monies and bonds that China holds in multiple billions , the internal bickering of how to off load such a vast amount of money is still why the float of the RMB can not happen and like you i wait until the big banana says ok we float and what will that do to the dollar in the USA and what value will the holdings be worth. Something has to give soon,

Less risk for the banks here as they are paying very low interest rates , their exposure on a global scale would seem to be limited,where as other countries banks pay a higher interest rate and are exposed to global markets with more risk, many banks in Europe, Australia,and usa have taken large hits on their value in the last weeks and days,

Banks here have been slow to lend monies last year and has continued so far this year, (part of the reason maybe)

Deutshe bank in Germany took a super hit to the tune of over 7 BILLION dollars. All major bank stocks are taking a hit. Thai banks seemed isolated to a degree but they have a lot of money lent out to people that should not really be lenders. Could take a bit for these chickens to come home to roost. Love the crystal ball gazer that sees the SET hit 1500. Would not be surprised if some of the hot money has started to move out. If the trickle becomes a flood look out. As China goes so goes Thailand. The Japanese market just racked up over 1300 points in losses over the last two days. If this trend continues for the rest of the week the Chinese market will be hit hard on Monday when it opens after a week of closure. Sounds strange to close for a whole week I bet some Chinese are watching Japan market with a great deal of angst. What a way to ruin a holiday.

Edited February 10, 201610 yr by elgordo38