Investor confidence up on vaccine rollout
The Investor Confidence Index broke into the bullish zone in August as more Thais received COVID-19 vaccines and the government expanded the pace of inoculations upcountry. The progress in delivering vaccines is reinforcing optimism that the peak of the pandemic may soon pass.
The Federation of Thai Capital Market Organizations reported that the index soared to 144.3 points, a 124 percent rise over the previous month. The Federation also published an optimistic forecast of 4 percent economic growth for the year and predicted the Stock Exchange of Thailand would attain 1,800 points next year.
Since the vaccination program has been in full swing with about 90 percent of people in Bangkok received their first shot, and the vaccines becoming more widely available in the provinces, investor and consumer sentiment has picked up positive vibes.
The Thai Bond Market Association, a member of the Federation, said that the local bond market recorded a huge net inflow of $3.35 billion so far this year. It attributed the increase to currency appreciation, a more positive outlook on the Thai economy, and declining COVID-19 cases.
The Association added that vaccine distribution is the strongest supporting factor for the market and investors believe the pandemic situation is improving based on that. They believe vaccinations will support an economic recovery.
The Association also mentioned that it is watching what the U.S. Federal Reserve will do in its next meeting, while Thailand’s Monetary Policy Committee is likely to keep its policy rate unchanged at 0.5 percent at its meeting on September 29.
Photo courtesy of https://thailand.prd.go.th/