Bangkok: The investor confidence index for the next three months has been classified in the "bullish" range, as revealed by the latest survey conducted by the Federation of Thai Capital Market Businesses (FETCO). Investors are closely monitoring capital inflows and economic stimulus measures, although international conflicts and the performance of listed companies continue to pose challenges to growth. The investor confidence index for the upcoming quarter stands at a robust 146.72.
According to Thai News Agency, Mr. Paiboon Nalintrungkur, Chairman of FETCO, shared insights from the FETCO Investor Confidence Index for July 2026, which was based on a survey conducted between July 20-31, 2026. The findings indicate that investors consider capital inflows as the primary factor enhancing confidence, followed by government economic stimulus initiatives and the performance of listed companies. Conversely, international conflicts, the performance of listed companies, and domestic political issues are seen as the main deterrents to investor confidence.
The FETCO survey highlighted that investor confidence across all groups for the next three months (October 2026) is rated at 146.72, placing it in the "buzz" category (index value range 120-159). Individual investor confidence is deemed "stable," while institutional investor confidence is "buoyant." Confidence among brokerage firm accounts and foreign investors is described as "extremely bullish."
The banking sector emerges as the most attractive for investors, whereas real estate development is viewed as the least appealing. Capital inflow is identified as the most significant supportive factor for the Thai stock market, with international conflicts being the most impactful hindering factor.
The survey results from July 2026 show that individual investor confidence increased by 11.9% to 119.49, brokerage firm account confidence surged by 25.0% to 166.67, domestic institutional investor confidence saw a slight decline of 1.8% to 126.32, and foreign investor confidence rose by 25.0% to 166.67.
In July 2026, the SET Index experienced growth throughout most of the month but encountered selling pressure towards its end. The market's performance was bolstered by foreign capital inflows and positive outlooks from foreign investors regarding Thailand's economic prospects, buoyed by expectations of policy stability, continuity, and an export sector recovery. Despite these positive indicators, market volatility persisted due to concerns over the Fed's monetary policy direction, uncertainties in US trade policy, tensions in the Middle East, and selling pressure on large-cap stocks following second-quarter earnings announcements. The SET Index closed at 1,623.64 at the end of July, marking a 2.04% increase from the previous month, with an average daily trading volume of 87,397 million baht. Foreign investors were net buyers of 48,864 million baht, contributing to a total net purchase of 75,864 million baht in the SET Index since the beginning of the year.
Domestically, key areas of focus include the Thai economy's recovery trend following an upward revision of the 2026 GDP forecast to 2.5% by the Ministry of Finance, driven by exports, investments, foreign investments in target industries, the tourism sector outlook, and Q2 2026 earnings reports of listed companies. Internationally, attention is directed towards the Federal Reserve's monetary policy, oil price volatility due to Middle East tensions, and uncertainties surrounding US trade policy, particularly the 12.5% import tariff on Thai goods, which could affect Thai exports and competitiveness.
Mr. Paiboon also projected a continued upward trend for the Thai stock market over the next 12-24 months, supported by a strong global economy, geopolitical diversification benefits, and Thai economic recovery alongside renewed profit growth from listed companies. He anticipates average profit growth of 8-10% annually over the next three years, with expectations for a full economic recovery by 2027-2028. Prominent sectors for investment include energy, banking, telecommunications and digital, tourism, and retail, along with stocks poised for value up/jump gains.