Investor confidence index at FETCO up in March

BANGKOK, March 15 (TNA) -- March’s investor confidence index of the Federation of Thai Capital Market Organisations (FETCO) increased for the first time in the past five months to 94.3 from 71.9 in February, said Kanate Wangpaichitr, president of FETCO. The sharp increase reflected investment confidence in the stock market in the next three months, said Mr Kanate. Investment index by foreign institutions rose most to 100 compared to only 10 from the previous survey, he said, adding that the banking sector was the most attractive sector while most investors were not interested in the steel sector. Positive factors for the Thai stock market are the government’s investment policy which has become more transparent along with the recovery of the US economy while most investors are monitoring a slowdown in China’s economy. Paiboon Nalinthrangkurn, a director of FETCO, said he believed foreign investment at the Stock Exchange of Thailand (SET) now would be short-term while long-term investors are still worried over the fundamental of Thailand’s economy along with government’s plan to invest in mega projects and on a public referendum of the new constitution. More foreign investment is expected to enter the SET if the last two factors are implemented, said Mr Paiboon. Terdsak Thaweethiratham, executive vice-president of Asia Plus Securities, estimated that earnings per share (EPS) of listed firms this year are at 89.38 baht, up from 68.65 baht last year. Mr Terdsak said he believed a certain amount of foreign investment would return to the Thai stock market, but at a lesser amount than the past four-five years. Foreign investors are now holding about 30 per cent of Thai stocks, considered lowest in the past decade. The SET index is expected to stay at 1,451-point at end-2016, Mr Terdsak added. (TNA)