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Thailand: Investor confidence improves but new Covid wave drags
Investor confidence in Thai financial markets over the next three months has improved slightly on optimism over vaccines and capital inflows, but has been capped by a new wave of coronavirus cases, a capital market association said on Tuesday.
A survey in January by the Thai Capital Market Organizations (FETCO) showed its investor confidence index was at 132.6 after falling to 130.6 in December, when the new Covid-19 cases emerged.
“Thailand’s selling points this year are vaccines, fund inflows and a recovery in corporate earnings,” Federation chairman Paiboon Nalinthrangkurn told a briefing, noting the index was still in the bullish zone.
Fund inflows are expected to return in the second half of this year as corporate earnings outperform in line with a slow recovery in the tourism-driven economy and sectors linked to the global economy, he said.
The Thai stock market has gained 2.5% so far this year after falling 8.3% in 2020, with foreign investors selling a net 278 billion baht ($9.3 billion) of shares since the start of 2020.
The country had largely controlled Covid-19 cases by mid-2020 but economists worry the second wave of infections will further dampen domestic activity and tourism.
The government aims to vaccinate 19 million people against the coronavirus in a first phase of inoculations starting later this month.
A separate survey by the Thai Bond Market Association showed the central bank is expected to hold its benchmark interest rate at a record low of 0.50% for the rest of 2021, senior vice president, Ariya Tiranaprakijor, told the briefing.
The Bank of Thailand’s next policy review is on Wednesday, and most economists have predicted no policy change.
Source: https://www.bangkokpost.com/business/2061391/investor-confidence-improves-but-new-covid-wave-drags