Investor confidence in Thailand has been shaken above all due to concerns of political situations and an economic recession, according to the Federation of Thai Capital Market Organizations (FETCO).
FETCO chairman Paiboon Nalinthrangkurn said that a survey last month showed that the FETCO Investor Confidence Index for the next three months ending November dropped by 21% to 67.52 in the bearish zone. Investor confidence among most groups was in the neutral zone but that among foreign investors was very bearish.
The biggest negative factor was the local political situation. Followed by local economic recession and situations in America and Europe. Most investors pinned their hope on local economic recovery. Followed by the monetary policies of the United States. Also capital movements and a COVID-19 vaccine.
The most interesting business sector was food and the least interesting one was the banking sector.
“Surveys on individual groups of investors in August 2020 showed that confidence among foreign investors plunged to the very bearish level at 25.00… Confidence among individual investors rose slightly to 90.63.
That among securities firms rose to 100.00 and institutional investors’ confidence fell to 87.50,” Mr Paiboon said.
Factors to be monitored included the second spread of COVID-19. Which delayed economic recovery in many countries. Furthermore the election of the United States. Also uncertainty about local assistance measures, unemployment, business closure and political unrest, he told TNA
Thailand Business Closures Spike Almost 40%
Meanwhile, the Economic Intelligence Centre (EIC), a research house under Siam Commercial Bank reports business closures spiked almost 40% from last year. Business closures hit 38.4% year-on-year from June to July.
The EIC also anticipates higher figures in the second half due to the economic downturn amid the pandemic crisis.
For the first 18 days of August, the ratio of business closures increased by 37.9% year-on-year, according to the Economic Intelligence Centre (EIC), a research house under Siam Commercial Bank.
Total business closures tallied 13,400 year-to-date as of Aug 18, 2020.