Latest news with #KobsakPootrakool
Bangkok Post
4 days ago
- Business
- Bangkok Post
Thai investor confidence hit by political turbulence
Investor sentiment has taken a sharp downturn, sliding firmly into the bearish zone amid mounting political uncertainty at home and escalating global conflicts, according to the latest survey by the Federation of Thai Capital Market Organizations (Fetco). The Fetco Investor Confidence Index (ICI) for June 2025, which gauges expectations for the Thai stock market over the next three months, dropped to 58.5, marking a retreat into bearish territory. The survey, conducted between June 20-30, reflects growing concerns among investors about domestic instability, geopolitical tensions and persistent capital outflows. Confidence dipped across investor groups. The ICI of retail investors was down 14.2% to 50.7, while that of institutional investors decreased 42.1% to 63.6 and foreign investors' ICI dropped 55.6% to 66.7. The confidence of proprietary traders fell 61.9% to 28.6, becoming extremely bearish. "Investor confidence is overshadowed by three main risks: domestic political uncertainties, international conflicts, and continued foreign fund outflows," said Fetco chairman Kobsak Pootrakool. Throughout June, the Thai stock market experienced heightened volatility, weighed down by the intensifying Iran-Israel conflict, rising tensions on the Thai-Cambodian border, and political instability following the Constitutional Court's suspension of Prime Minister Paetongtarn Shinawatra on July 1. The Stock Exchange of Thailand (SET) index closed June at 1,089.56 points, falling 5.19% from the previous month, with average daily trading volume at 39.7 billion baht. Foreign investors were net sellers of 7.94 billion baht in June, pushing total foreign net outflows for the first half of 2025 to a staggering 78.7 billion baht. In the first half, economic indicators showed signs of weakening across key sectors, including consumer spending, manufacturing and tourism. Notably, 50% of newly opened restaurants have already shut down. The SET index plunged by 22%, making it the worst-performing stock market globally, while South Korea's stock market led the world with a 28% gain. According to SET data, foreign investors were net sellers of Thai equities, with net outflows of 79 billion baht year-to-date. This follows net sales of 417 billion baht in 2024, continuing a persistent trend of capital flight from the Thai market. Looking forward, investors are watching the US-Thailand trade negotiations, especially after Washington extended its tariff decision deadline to Aug 1, noted Fetco. Tensions in the Middle East, which may affect oil prices and threaten global economic stability, also warrant monitoring. Thailand's economic outlook is clouded by weakening exports, declining tourist arrivals, and a fragile government that may struggle to implement key policy initiatives, said Mr Kobsak. "While the Federal Reserve's rate pauses and local stimulus measures have provided some cushion, investor sentiment remains fragile," he said.
Malay Mail
4 days ago
- Business
- Malay Mail
Thailand's stock investor confidence turns bearish in June
BANGKOK, July 9 — Thailand's stock investor confidence worsened in June due to domestic political uncertainty, international conflicts, and fund outflows, a survey showed on Tuesday, reported Xinhua. The investor confidence index, which predicts market conditions over the next three months, stood at 58.45 last month, plunging from 110.36 in May to the "bearish" zone, according to the Federation of Thai Capital Market Organisations (Fetco). Investor morale declined among all categories, with proprietary investors down 61.9 per cent, foreign investors down 55.6 per cent, institutional investors down 42.1 per cent, and retail investors down 14.2 per cent, the Fetco said in a statement. The Thai capital market experienced high volatility in June as the local political situation fuelled investor anxiety over the government's stability, along with border tensions with neighbouring Cambodia and the Iran-Israel conflict, said Fetco Chairman Kobsak Pootrakool. Kobsak told a news conference that the outcome of trade negotiations between the United States and its trading partners, coupled with geopolitical issues in the Middle East affecting oil prices and potentially impacting the global economy, are external factors to monitor. Locally, a constitutional court order suspending Prime Minister Paetongtarn Shinawatra pending an ethics investigation could adversely affect the implementation of key economic policies and harm the private sector's long-term investment strategies, he said. He noted that the Thai economic slowdown expected in the latter half of the year, driven by weakened exports and a decline in inbound tourists, was also a concern. — Bernama/Xinhua
The Star
5 days ago
- Business
- The Star
Thailand's stock investor confidence turns bearish in June
BANGKOK, July 8 (Xinhua) -- Thailand's stock investor confidence worsened in June due to domestic political uncertainty, international conflicts, and fund outflows, a survey showed on Tuesday. The investor confidence index, which predicts market conditions over the next three months, stood at 58.45 last month, plunging from 110.36 in May to the "bearish" zone, according to the Federation of Thai Capital Market Organizations (FETCO). Investor morale declined among all categories, with proprietary investors down 61.9 percent, foreign investors down 55.6 percent, institutional investors down 42.1 percent, and retail investors down 14.2 percent, the FETCO said in a statement. The Thai capital market experienced high volatility in June as the local political situation fueled investor anxiety over the government's stability, along with border tensions with neighboring Cambodia and the Iran-Israel conflict, said FETCO Chairman Kobsak Pootrakool. Kobsak told a news conference that the outcome of trade negotiations between the United States and its trading partners, coupled with geopolitical issues in the Middle East affecting oil prices and potentially impacting the global economy, are external factors to monitor. Locally, a constitutional court order suspending Prime Minister Paetongtarn Shinawatra pending an ethics investigation could adversely affect the implementation of key economic policies and harm the private sector's long-term investment strategies, he said. He noted that the Thai economic slowdown expected in the latter half of the year, driven by weakened exports and a decline in inbound tourists, was also a concern.
Bangkok Post
30-06-2025
- Business
- Bangkok Post
Thai political battles take toll on investment
Bangkok Bank (BBL) anticipates that ongoing domestic political instability will further delay investment decisions, compounding the impact of US tariffs on Thai exports. According to Kobsak Pootrakool, senior executive vice-president at BBL, the prevailing political uncertainty could postpone investment decisions across both the public and private sectors. At the same time, many businesses are holding off on investment until there is greater clarity regarding US tariff policies on Thai exports and the outcome of the Thai government's trade negotiations with the United States. "Political developments in Thailand are generally difficult to predict," Mr Kobsak noted. "As such, the bank is closely monitoring the situation and assessing the potential implications for the Thai economy. Nevertheless, external uncertainties, particularly those arising from US trade policies, remain a major challenge to the country's growth prospects this year, especially given Thailand's existing structural issues." In response to these headwinds, BBL has slashed its 2025 Thai GDP growth forecast to 2%, from 3%, based on the assumption that the US will impose reciprocal tariffs on Thai exports in the range of 10-15%. In a worst-case scenario, if risks materialise further, GDP growth could fall to 1.5%, primarily due to the impact of the tariffs, Mr Kobsak said. He added that although Thai exports appeared robust in the first half of the year, this strength was largely driven by front-loading from buyers concerned about impending tariffs, and the export outlook beyond the early months remains highly uncertain. Export challenges are expected to intensify in the second half of the year. US importers may reduce their orders after stockpiling, while heightened trade tensions and potential tariff hikes could add further strain. In addition, should Chinese goods be redirected to other markets due to trade negotiations, Thai products may face increased competition in those regions, Mr Kobsak said. Meanwhile, he said the tourism sector is also facing headwinds thanks to an ongoing decline in the number of Chinese arrivals. In the first five months of 2025, international tourist arrivals dropped by 2-3% year-on-year, leading the bank to project total international tourist arrivals to tally around 35.5 million this year. "The decline in foreign tourists, particularly from China, has been driven by security concerns and the recent earthquake in Bangkok," Mr Kobsak said. "Typically, Thailand takes around four to five months to recover from such negative events." However, he added that the bank will be monitoring the tourism sector in the final quarter of the year. Should the government introduce new measures to attract international visitors, the sector may still see an improvement before year-end, he noted. In terms of monetary policy, Mr Kobsak expects the Bank of Thailand to cut its policy rate twice this year, lowering it from the current 1.75% to 1.25% in a bid to support the economy amid rising uncertainties. Additionally, the baht is projected to appreciate against the US dollar by the end of the year, in line with a weakening greenback.
The Star
13-06-2025
- Business
- The Star
Thai investor confidence holds steady amid economic concerns
Local growth: People shopoing at Bangkok's Chinatown. Stimulus packages, an anticipated local economic recovery and incoming fund flows are the primary positive influences lifting investor confidence in Thailand's economy. — Reuters BANGKOK: Investor confidence in Thailand remained in a 'neutral' zone in May 2025, influenced by hopes of government stimulus and domestic economic recovery, and tempered by concerns over sluggish local growth and global trade tensions. The latest Federation of Thai Capital Market Organisations (FETCO) Investor Confidence Index registered 110.36 for May 2025. The survey, conducted between May 19 and 31, anticipated market conditions over the next three months. FETCO chairman Kobsak Pootrakool said that government stimulus packages were the primary positive influence, followed by an anticipated local economic recovery and incoming fund flows. Conversely, the 'sluggish Thai economy' was identified as the most significant drag on sentiment, alongside the ongoing trade wars and concerns over financial discipline. Elaborated on the breakdown by investor type, Kobsak noted an increase in confidence among retail investors (up 38.5% to 59.09) and proprietary investors (up 25.0% to 75). However, institutional investors saw a dip (down 15.9% to 110). Foreign investor confidence, in contrast, surged by 125% to 150. During May, the Thai capital market experienced volatility due to both domestic and international factors. While the easing of US trade policy provided some relief, slower-than-expected local economic growth dampened spirits. The Office of the National Economic and Social Development Council revised Thailand's 2025 economic growth forecast down to 1.8%, a significant cut from its earlier prediction of 2.8%. Highlighting the economic slowdown, private consumption in the first quarter of 2025 expanded by only 2.6% and industrial production over the past five quarters saw a meagre 0.5% increase. — The Nation/ANN
