BANGKOK: Investor confidence in Thailand remained in a “neutral” zone in May 2025, influenced by hopes of government stimulus and domestic economic recovery, and tempered by concerns over sluggish local growth and global trade tensions.
The latest Federation of Thai Capital Market Organisations (FETCO) Investor Confidence Index registered 110.36 for May 2025.
The survey, conducted between May 19 and 31, anticipated market conditions over the next three months.
FETCO chairman Kobsak Pootrakool said that government stimulus packages were the primary positive influence, followed by an anticipated local economic recovery and incoming fund flows.
Conversely, the “sluggish Thai economy” was identified as the most significant drag on sentiment, alongside the ongoing trade wars and concerns over financial discipline.
Elaborated on the breakdown by investor type, Kobsak noted an increase in confidence among retail investors (up 38.5% to 59.09) and proprietary investors (up 25.0% to 75).
However, institutional investors saw a dip (down 15.9% to 110). Foreign investor confidence, in contrast, surged by 125% to 150.
During May, the Thai capital market experienced volatility due to both domestic and international factors.
While the easing of US trade policy provided some relief, slower-than-expected local economic growth dampened spirits.
The Office of the National Economic and Social Development Council revised Thailand’s 2025 economic growth forecast down to 1.8%, a significant cut from its earlier prediction of 2.8%.
Highlighting the economic slowdown, private consumption in the first quarter of 2025 expanded by only 2.6% and industrial production over the past five quarters saw a meagre 0.5% increase. — The Nation/ANN
