Investor confidence in the Thai stock market has hit a three-month high, bolstered by continued foreign fund inflows and optimism over growth in corporate earning, a capital markets group said on Monday.
A survey in March by the Federation of Thai Capital Market Organizations (FETCO) showed its investor confidence index, which measures confidence over the next three months, increased to 117.92 from 113.03 in the previous month.
"Foreign investors are still bullish on the Thai stock market, driven by earnings growth, fund inflows and an economic recovery," federation chairman Paiboon Nalinthrangkurn said at a news briefing.
Foreign investors have bought a net 113 billion baht (US$3.4 billion) of Thai shares so far this year, after selling a combined 671 billion baht ($20 billion) between 2017 and 2021.
The Thai stock market is still on an upward trend, with the war in Ukraine and higher oil prices seen as temporary, Paiboon said, adding a recovery in the vital tourism sector would be key to support the economy and the stock market.
Thailand's main stock index has risen 2.7% so far this year, versus 14.4% in the whole of 2021.
The survey showed analysts and fund managers expected the Thai economy to grow 3.09% this year, down from a prediction of 3.71% growth in a January survey, hurt by a coronavirus outbreak, rising oil prices and a global economic slowdown.
