Connect with us

Business

SET Investor Confidence Drops 41.8% as US Monetary Policy Tightens

Avatar of CTN News

Published

on

SET Investor Confidence Down 41.8%

The investor confidence index in Thailand seems less optimistic about stocks on the Stock Exchange of Thailand (SET) because they are worried about the US tightening its monetary policy, capital leaving the country and worsening geopolitical conflicts.

The Federation of Thailand’s Capital Market Organizations (Fetco) said that the investor confidence index, which predicts stock market conditions for the next three months, was down 41.8% from the previous month to 67.8 in September, moving back into the bearish zone.

Most people’s moods have been hurt by the Federal Reserve raising interest rates, followed by capital leaving the country and international wars.

Kobsak Pootrakool, the chairman of Fetco, said that the economic recovery and the Bank of Thailand’s interest rate hike are the next most important factors boosting investor confidence. The tourism recovery is the most important factor, he said.

During the first week of September, the SET Index showed that global stock markets were going up. But the benchmark index slowly followed the extended global sell-off caused by the Fed’s interest rate hike, the World Bank’s prediction of a weak global economy in 2023, and the growing Russia-Ukraine conflict as Moscow tried to send in more troops.

Also, the fact that FTSE cut the weight of Thai large-cap stocks on September 16 hurt sentiment, which made the SET Index move in a tight range between 1,589.51 and 1,665.74, ending the month at 1,589.51. That number was 3% less than what it was in August.

Foreign investors sold a net amount of 24.3 billion baht during the month but still bought 146 billion baht this year.

“In terms of external factors, investors are worried about the Fed tightening monetary policy and its next rate move to bring down inflation, which is still high, as well as other central banks’ monetary policy moves to calm volatility in the foreign exchange market,” Mr. Kobsak said.

Investors need to keep an eye on the chances of a global recession and the rising tensions in the conflict between Russia and Ukraine after Russia said it had taken over four Ukrainian regions.

He said that investors in the US are keeping an eye on the rating landscape after the central bank’s Monetary Policy Committee raised its policy rate for the second time last month, bringing the benchmark rate to 1%.

Other factors include Thailand’s economic outlook, which a rise has helped in tourism, and the country’s political situation, which will be important in the second quarter of 2023 when a general election is expected.

Thailand’s Political Situations Shake Investor Confidence

Thailand’s Political Situations Shake Investor Confidence

Continue Reading

CTN News App

CTN News App

Recent News

BUY FC 24 COINS

compras monedas fc 24

Volunteering at Soi Dog

Find a Job

Jooble jobs

Free ibomma Movies