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).

- NUNTAWUN POLKUAMDEE

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.