Thai stock lovers are riding a wave of confidence – the highest in seven whole months! Why, you ask? Well, the credit goes to the brand-spanking-new government taking charge. But, wait a minute! There’s a tiny raincloud on this sunny day – folks are a tad worried about China’s economy hitting the brakes.
Here’s the scoop: Thailand’s main man, the king, just gave his royal nod to an 11-party coalition government. Talk about a relief! We were all biting our nails since that election back in May. It felt like ages!
Now, here’s some juicy stats for ya. According to a survey by the big shots at FETCO in August, investor confidence skyrocketed – I mean, a whopping jump of 69.3% to 141.27 from a modest 83.45 in July. It’s like the market mood shifted from “meh” to “let’s party!”
Our foreign buddies? They’re feeling the vibe too. Their confidence shot up by an impressive 87.5% since July, moving from a “kinda gloomy” bearish zone to the full-blown “rock on!” bullish zone, says FETCO.
However, here’s a downer. The main stock index has dipped by 7% this year. Foreign investors? Well, they sold Thai shares worth a massive 138 billion baht ($3.9 billion). Bit of a switch from last year when they were splashing the cash, buying stocks worth 202.7 billion baht.
But don’t fret! With the new government settling in and clearing the air, we might just see more foreign bucks pouring in, quipped FETCO’s head honcho, Kobsak Pootrakool. His two cents? The government needs to roll up its sleeves and pump some life into the economy by year-end. And what’s the game plan? “Boost the tourism biz! It doesn’t need deep pockets,” he chirped.
On the same note, Prime Minister Srettha Thavisin, who’s juggling his role as the finance guru too, piped up on Tuesday. His mission? To tune into the people’s beat and put some pep in the step of the sluggish economy. Gotta love that dedication!
A quick reality check: Southeast Asia’s second-in-line economy expanded a mere 1.8% between April to June, a snail’s pace compared to before. And word on the street? The central bank might just dial down its 2023 growth predictions.
And for those curious cats: $1 is dancing at 35.48 baht.
