Investor confidence in Thai financial markets for the three months ahead has risen slightly on optimism over the country’s COVID-19 vaccination programme, a capital market association. The tourism-reliant country started its long-awaited mass vaccination drive and is preparing a phased reopening to vaccinated foreign visitors later this year, dependent on its progress with inoculations. The vaccination programme to help ease the COVID-19 situation is the most supportive factor, followed by an expected economic recovery and fund inflows. Thailand’s stock market has risen 12 per cent so far this year to 1,621 points. Foreign investors, however, have sold 62 billion baht (US$2 billion) of Thai shares so far this year after dumping about 264 billion baht in the whole of 2020.
The central bank at its next meeting on Jun 23 will likely keep its key interest rate at a record low of 0.50 per cent again to support the economy. New corporate bond issuance of at least 750 billion baht in 2021 versus last year’s 684 billion baht. The government’s new US$16 billion borrowing plan to ease the outbreak impact should have a limited effect on the debt market as it has various options to raise funds