The investor confidence index retreated to bearish territory for the first time in eight months in May as political conflicts and an economic slowdown undermined sentiment, suppressing the positive impact of a tourism recovery, says the Federation of Thai Capital Market Organizations (Fetco).
Fetco chairman Kobsak Pootrakool said the May index, which anticipates market conditions over the next three months, was 77.70, down 26.8% from the previous month. The survey was conducted from May 22-31, a week after the general election.
"The formation of a new government would be the most supportive factor to lift confidence, followed by the tourism recovery and a local economic rebound. Investors are concerned about post-election political conflicts, a local economic pause and a planned financial transaction tax on securities trades on the Stock Exchange of Thailand [SET]," said Mr Kobsak.
