Foreign Investors Bullish on Thai Stock Market Amid War, Politics Risks
Foreign investors are driving confidence in Thai stocks to a "hot" level despite geopolitical tensions and political risks, with the SET Index gaining 2.04% in July as overseas buyers injected nearly 49 billion baht into the market.
FETCO Chairman Paibuol Nalintharangkur released the July 2025 Investor Confidence Index, surveyed from July 20–31, showing investor confidence for the next three months at 146.72 points—a "hot" level reflecting optimism about Thailand's capital market trajectory. Foreign capital inflows emerged as the strongest support factor, followed by state economic stimulus measures and listed company earnings.
The biggest risk factors cited by investors were international conflicts, followed by listed company performance and domestic political uncertainty. Foreign investors and brokerage accounts reported "extremely hot" confidence, domestic institutional investors showed "hot" confidence, and retail investors remained "neutral." Banking stocks attracted the most interest, while real estate stocks drew the least.
Throughout July 2025, the SET Index rose nearly continuously before facing selling pressure late month due to corporate earnings concerns and external factors. However, net foreign buying and confidence in Thai economic trends provided support. The SET Index closed July at 1,623.64 points, up 2.04% from the prior month, with average daily trading value at 87,397 million baht. Foreign investors posted net purchases of 48,864 million baht, bringing year-to-date net foreign inflows to 75,864 million baht.
FETCO highlighted key factors to monitor: Thai economic recovery following the Finance Ministry's revised 2025 GDP forecast to 2.5%, foreign investment in target industries, tourism recovery, and Q2 corporate earnings. External factors include U.S. Federal Reserve policy direction, Middle East tensions, oil price volatility, and uncertainty over U.S. trade policy—particularly the planned 12.5% tariff on Thai imports, which could impact exports and competitiveness.
