Volatility in global markets and currencies is forecast to push Thailand’s Investor Confidence Index down by as much as 17.85 percent to 73.46 during March.
The President of the Federation of Thai Capital Market Organization (FETCO), Worawan Tharapoom, made the three-month projection citing previous figures. She said the foreign Investor Confidence Index would take the biggest hit, falling 57.15 percent to 33.33.
Worawan explained the massive drop will be the culmination of international concerns and volatility in global markets and currencies, particularly China’s weakening yuan. Other key factors will include low fuel prices, unrest in the Middle East and the U.S. Federal Reserve’s decision to raise the benchmark interest rate.
According to the FETCO President, Thai Government policy would be the most influential element affecting the local stock market.
She suggested the administration find measures to improve agricultural prices, arguing that agriculturalists make up the biggest group of consumers.
Worawan also recommended the government come up with a plan to effectively deal with the anticipated drought.