Skip to main content

Advertisement

Advertisement

Business

Thai investor mood dips for first time in 4 months, politics weigh: Survey

Thai investor mood dips for first time in 4 months, politics weigh: Survey

FILE PHOTO: A man monitors a stock index board at a bank in Bangkok, Thailand, February 6, 2018. REUTERS/Athit Perawongmetha/File Photo

BANGKOK: Investor confidence in Thailand's capital markets over the next three months dropped for the first time in four months, unsettled by recent anti-government protests, a capital market association said on Thursday (Aug 13).

The risk coming from political turbulence is adding to pressure on the government as policy makers struggle to revive an economy expected to shrink by a record amount as the coronavirus pandemic upends tourism and consumption.

The Federation of Thai Capital Market Organisations said its July survey showed the investor confidence index fell to 85.26 from 101.19 in the previous month.

"The main reason was politics. It's the first time in months that political factors took the spotlight and played a role in investment," the federation's chairman, Paiboon Nalinthrangkurn, told a briefing.

READ: Thailand's king swears in Cabinet, silent on demands for royal reform

READ: 'We must fight' - Thailand's youth take on the establishment

Demonstrators have called for the removal of the government of Prime Minister Prayuth Chan-ocha, amendments to the constitution and reforms of the monarchy.

The Thai stock index has fallen by 15 per cent so far this year, with foreign investors dumping 231 billion baht (US$7.44 billion) of shares.

Investors remained concerned about the economy and the earnings of listed companies, but they hoped a new government economic team would help restore confidence, Paiboon said.

"From now on, it will depend on the new team and whether they will have policies to build market confidence," he said.

In a cabinet shake-up, banking executive Predee Daochai was picked as finance minister and given the tough task of pulling Southeast Asia's second-largest economy out of a deep slump.

The finance ministry expects the economy to shrink 8.5 per cent this year, although the government has introduced stimulus measures, including a 1.9 trillion baht package, in a bid to mitigate the outbreak impact.

Source: Reuters/jt

Advertisement

Also worth reading

Advertisement