FETCO: Stable Thai political situation will draw in huge capital inflows

BANGKOK, June 6 (TNA) - The Federation of Thai Capital Market Organizations (FETCO) says that the domestic political situation, if stable, after the newly-elected coalition government takes office and moves forward key policies should draw in huge capital inflows of at least 10 billion baht monthly in the second half of this year. FETCO Chairman Paiboon Narintarangkul made the remarks in Bangkok on June 5, when, he acknowledged, the net capital inflow stood at about 5 billion baht as Thai lawmakers were voting for the country's new prime minister in the Parliament. "It's a good news and development that the next Thai prime minister has already been voted by the Parliament.The capital inflows should, thus, keep rising in the coming months. This could also boost the Stock Exchange of Thailand (SET) index to reach 1,750 points by the end of this year as earlier targeted, driven mainly by the more bullish trading of stocks in the consumer goods manufacturing and construction sectors, if the new Thai coalition government would become stable and secure its support in the Parliament", Paiboon told journalists. The FETCO chairman then urged the new Thai administration, headed by Prime Minister General Prayut Chan-ocha for his second term, to quickly carry on public mega-investment projects, including those in the country's Eastern Economic Corridor (EEC), along with implementing new economic stimulus measures to boost the domestic consumption and the national economic growth in the second half of this year to offset negative impacts from the persistent trade war between the United States and China. Meanwhile, Ariya Tiranaprakij, Executive Vice President of the Thai Bond Market Association (Thai BMA), revealed that the net sale of Thai bonds and other debt instruments as of June 5 stood at about 26 billion baht, from about 50 billion baht at the end of last month, with long term-bonds and other debt instruments, held by international investors, totally amounting to 847 billion baht and short term-ones of less than one year totally amounting to 93 billion baht, thanks to the clearer Thai political direction and signs on a further drop in the US key interest rate in the coming months. (TNA)