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Investor confidence in the Thai stock market has slipped to a three-month low on concerns about Russia's invasion of Ukraine and the Federal Reserve's tightening policy, a capital markets group said on Thursday.
An April survey by the Federation of Thai Capital Market Organizations (FETCO) showed its investor confidence index, which measures confidence over the next three months, dropped to 95.42 but remained in the "neutral zone", after rising to 117.92 in the previous month.
Foreign investor confidence fell 19% from the "bullish zone", also weighed by the finance ministry's plan to collect a financial transaction tax, the group said, adding it also opposed the plan.
"The confidence of all types of investors declined due to several negative factors," federation chairman Paiboon Nalinthrangkurn told a new briefing.
The group lowered its target for the main Thai stock index to 1,750 points this year from 1,800 points, he said.
The SET index has fallen 0.76% to 1,645.76 points so far this year, after rising 14.4% in the whole of 2021.
However, the market has been supported by recovery in tourism and the domestic economy following an easing of travel restrictions, as well as continued capital inflows, Paiboon said.
"Although the economy may grow less than 3% this year, the lowest in Asia, investors are focusing more on stability than growth," he said of Thailand's fiscal and financial stability. ($1 = 34.11 baht)
(Reporting by Satawasin Staporncharnchai; Editing by Martin Petty)