Bangkok: The investor confidence index has reached a "very strong" level of 165.37, as revealed by the Federation of Thai Capital Market Businesses (FETCO). Investors are closely monitoring capital inflows alongside potential pressures from international conflicts, with the political landscape offering both support and challenges to market confidence.
According to Thai News Agency, Mr. Kobsak Pootrakul, Chairman of FETCO, indicated that the Investor Confidence Index (ICI) for the upcoming three months reflects a significant rise in optimism, particularly buoyed by capital inflows. The domestic political scene and US Federal Reserve's monetary policy are additional factors influencing investor sentiment. Conversely, international conflicts, domestic political uncertainties, and the Eurozone's economic situation are perceived as negative influences on confidence.
The January 2026 survey highlighted that investor confidence among individual investors, brokerage account holders, and institutional investors is classified as "strong," whereas foreign investors demonstrate an "extremely strong" confidence level. The banking sector emerged as the most attractive, contrasting with the least favored real estate development sector.
The survey, conducted in January 2026, also revealed a 26.3% increase in individual investor confidence to 129.66, a 7.1% rise in brokerage firm account holders to 150.00, a decrease of 8.3% among domestic institutional investors to 122.2, while foreign investors maintained a stable confidence level at 200.00.
In the initial weeks of January 2026, the SET Index showed limited fluctuations before surpassing 1,300 points later in the month. This was driven by the 'Sell America' trend, where global investors divested US assets due to tensions between President Donald Trump and Europe over Greenland, alongside rising gold prices and a stronger Thai baht. Consequently, foreign capital returned to the Thai market, resulting in net buying of 4,345 million baht by foreign investors. The SET Index closed at 1,325.62 by month's end, marking a 5.24% increase compared to December 2025, with an average daily trading volume of 46,496 million baht.
Internationally, investors are advised to observe the US trade war and tariffs affecting Thai export and import sectors, interest rate directions in major economies influencing capital flows, escalating US-Europe trade risks, Middle Eastern tensions, and potential US military actions against Iran impacting energy prices and the global economy. Domestically, attention is focused on election outcomes, government formation, and constitutional referendum results. Despite these challenges, the Thai economy is expected to grow at a modest rate of 1.5-1.8% in 2026, the lowest in years. Additionally, investors should keep an eye on Q4 2025 earnings reports of listed companies, as these will be critical in determining the future trajectory of the Thai stock market.