Investor confidence in Thailand’s financial markets for the next three months has fallen to its lowest level in nine months, shaken by a prolonged outbreak of COVID-19, a capital market group said on Tuesday, as the country trailed off. struggling with an increase in coronavirus cases.
BANGKOK (Reuters) – Investor confidence in Thai financial markets for the next three months has fallen to its lowest level in nine months, shaken by a prolonged outbreak of COVID-19, a capital market group said on Tuesday, as the country grapples with an increase in coronavirus cases.
A July survey by the Federation of Thai Capital Markets Organizations (FETCO) showed its investor confidence index fell to 64.37 from 106.5 the previous month.
“The confidence index has fallen further due to the worsening epidemic situation in the country, while the distribution of vaccines has been delayed,” Federation President Paiboon Nalinthrangkurn told a briefing.
With the current COVID-19 situation, the government’s plan to fully reopen Thailand later this year is likely to derail, he said.
Bigger and faster fiscal stimulus packages will be needed to support economic activity, Paiboon said.
The main Thai stock index has gained 6% so far this year, but foreign investors have sold 92 billion baht ($ 2.79 billion) of Thai stocks during the period.
A separate investigation by the Thai Bond Market Association showed the central bank would keep its key interest rate at an all-time high of 0.50% on Wednesday to support the economy.
(US $ 1 = 33.0 baht)
(Reporting by Satawasin Staporncharnchai; editing by James Pearson)