Thailand's stock investor confidence turns "very bullish" in August: survey

Thailand's stock investor confidence improved for a second successive month in August, primarily driven by fund inflows, alongside listed company earnings and government economic stimulus measures, a survey showed on Monday.

The investor confidence index, which predicts market conditions over the next three months, stood at 165.89 last month, up from 146.72 in the July survey, and entered the "very bullish" zone, according to the Federation of Thai Capital Market Organizations (FETCO).

Investor morale was mixed across categories, with retail investors down 1.4 percent and proprietary investors down 6.7 percent on a monthly basis, offset by a 4.2 percent increase in domestic institutional investors and a 20 percent surge in foreign investors, the FETCO said in a statement.

In August, the Stock Exchange of Thailand index gained in the first half on strong second-quarter Thai gross domestic product growth and robust private investment before slipping in the second half as foreign investors took profits, said FETCO chairman Paiboon Nalinthrangkurn.

Tensions in the Middle East, uncertainty over U.S. monetary policy direction, and consistently high global government bond yields further weighed on the market, Paiboon said.

Looking ahead, he said investors are closely monitoring the trajectory of Thailand's economic recovery in the latter half of the year, as well as the administration's ability to effectively implement its economic agenda and the parliamentary deliberation of the fiscal budget.

He noted that eyes are also on the potential spillovers from U.S. trade policies on Thai shipments and supply chains.

Meanwhile, sentiment remains clouded by lingering uncertainties regarding probes into the Senate selection process and the legal challenge over February election ballots, for which the Constitutional Court is slated to deliver a verdict in September, he added.  

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