Bangkok: The investor confidence index in Thailand has shown a significant surge, reaching the "very strong" category for the second consecutive month, as reported by the Federation of Thai Capital Market Businesses (FETCO). For the upcoming three months, the index stands at 181.16, reflecting robust confidence among investors. This increase is largely attributed to the anticipation of support from capital inflows and the domestic political situation, although international conflicts and political uncertainties continue to pose challenges to the market.
According to Thai News Agency, Mr. Kobsak Pootrakul, Chairman of FETCO, elaborated on the findings of the Investor Confidence Index for February 2026, based on a survey conducted between February 20-28, 2026. The survey highlights that capital inflows are the primary factor enhancing investor confidence, supplemented by the domestic political climate and government economic stimulus measures. Conversely, international conflicts, domestic political uncertainty, and trade wars are seen as negative influences on investor sentiment.
In terms of investor categories, individual investors displayed a "hot" confidence level of 151.56, marking a 16.9% increase. Securities firm accounts reached 183.33, a rise of 22.2%, and domestic institutional investors climbed to 187.50, up 53.4%. Foreign investors showed an "extremely hot" confidence level at 200.00. Among industry groups, the banking sector was deemed most attractive to investors, while the automotive sector was the least appealing.
Mr. Kobsak noted that February witnessed the SET Index benefitting from the domestic political landscape, particularly the election outcomes and the anticipated stability of the new government. Furthermore, the Monetary Policy Committee's decision to reduce the policy interest rate by 0.25% to aid economic recovery resulted in increased foreign investment in the Thai capital market. Despite this, the market experienced pressure from geopolitical and global economic risks, especially the tense situation in the Middle East at the month's end. By February's close, the SET Index reached 1,528.26 points, up 15.29% from the prior month, with an average daily trading volume of 59,748 million baht. Foreign investors emerged as net buyers with 54,596 million baht, and since the start of the year, they have been net buyers totaling 58,905 million baht.
Internationally, factors such as global geopolitical tensions, energy price fluctuations due to Middle East instability, and uncertainties regarding international trade and tariff policies, particularly following U.S. President Donald Trump's recent announcement of a 15% increase in global import tariffs, are crucial to monitor.
Domestically, the stability of the new government and its economic policies will be pivotal in shaping economic stimulus measures, government investments, and investor confidence, both locally and internationally, in the forthcoming period.