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FETCO reports Thai investor confidence boost due to Covid-19 vaccination programme

According to the Thai Capital Market Organisation (FETCO) report, Thai investor confidence has risen due to the Covid-19 vaccination programme. FETCO released the information and press release yesterday, on the 6th of June.

The government started its long-awaited mass vaccination drive on Monday. The Thai government is preparing a phased reopening to vaccinated foreign visitors later this year. This action is dependent on its progress with inoculations.

A May survey by Fetco showed its investor confidence index rose to 126.4, following a drop to 124.37 in April. This drop occurred when the latest, more severe outbreak emerged.

“The most supportive factor to the stock market rise is the vaccination programme to help ease the Covid-19,” said FETCO chairman Paiboon Nalinthrangkurn. “This is followed by an expected economic recovery and fund inflows,” he told the FETCO briefing.

FETCO chairman is optimistic of Thai stocks

The Stock Exchange of Thailand has risen 12% so far this year to 1,621 points. Mr Paiboon said it could reach 1,650 points by the end of the year, he said.

Foreign investors, however, have sold 62 billion baht of Thai shares so far this year. Last year foreign investors dumped about 264 billion baht in Thai shares.

A separate survey by the Thai Bond Market Association showed the central bank at its next meeting on June 23 will likely keep its key interest rate at a record low of 0.50% again. Senior Vice President of FETCO, Ariya Tiranaprakijor, told the FETCO briefing that the reason for this course of action is to support the economy.

The agency expects new corporate bond issuance of at least 750 billion baht in 2021. This amount is higher than last year’s 684 billion baht.

The government’s new $16 billion borrowing plan to ease the outbreak impact should have a limited effect on the debt market. “The government still has various options to raise funds”,  said Ms Ariya. Above all, we can expect a further recovery in the upcoming year.

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