The Federation of Thai Capital Market Organizations' (Fetco) investor confidence index (ICI) remained in the bearish zone last month, with the local economic slowdown, the trade war, and international conflicts being the main factors limiting confidence.
The March ICI, which anticipates market conditions over the next three months, was 60.9 with investors citing the government's stimulus as the most supportive factor, along with the Bank of Thailand's rate cut hinting at a downward trend.
The confidence of retail investors is very bearish, while that of proprietary investors and foreign investors is in the bearish zone.
Institutional investor confidence is in the neutral zone, said Fetco chairman Kobsak Pootrakool.
The most influential factor driving the Thai stock market is the government stimulus package, with the biggest factor impeding confidence international conflicts, he said.
The March survey results found the confidence of retail investors fell 22.4% to 38.8, while that of proprietary and institutional investors decreased by 20% and 3.7% to 60 and 111, respectively.
The ICI of foreign investors was stable at 66.7.
"The Thai capital market marched through the month of March amid challenges from internal and external factors," said Mr Kobsak.
"Escalating Russia-Ukraine conflicts, new US tariff rates and the earthquake on March 28 all eroded investor confidence as it affected business operations and the capital market."
At the end of March, the Stock Exchange of Thailand (SET) index closed at 1,158.09 points, down 3.8% from the previous month, with an average daily trading volume of 38.5 billion baht.
Foreign investors were net sellers of 21.9 billion baht, bringing their net selling to 40 billion year-to-date.
He said external factors to monitor include the escalating trade war and uncertainties surrounding US tariffs and potential retaliation, the lingering Russia-Ukraine conflict, and the rising price of gold.
Domestically, investors should focus on Thailand's economic indicators, especially the weakening tourism industry and private investment, anticipated government stimulus for inbound tourism and the impact from the recent earthquake, said Mr Kobsak.
