The Investment Analysts Association (IAA) is expected to revise up the Stock Exchange of Thailand (SET) end of year target from the current estimate of 1,460 points, boosted by the launch of the Vayupak Fund and Thai ESG Fund, along with the new government's stimulus measures.
In the short term, liquidity of around 200 billion baht would help support the stock market, including 150 billion baht from the Vayupak Fund and 50-60 billion baht from Thai ESG Fund, said Kobsak Pootrakool, chairman of the Federation of Thai Capital Market Organizations (Fetco).
Moreover, Fetco is planning to ask the Finance Ministry for additional support by extending the Super Saving Fund (SSF), which will end this year, as well as the establishment of a tax-incentive education fund, which is available in other countries for parents to have long-term savings for their children's future education, he said.
In the future, the Thai stock market would see an increase in the variety of products in line with current global trends, said Mr Kobsak.
During the first half of August, the bourse fluctuated, slipping below the 1,300 mark as political uncertainty emerged after the Constitutional Court dissolved the Move Forward Party and dismissed Srettha Thavisin as prime minister.
Driven by improving tourism, private consumption and exports, along with better than expected second-quarter GDP growth of 2.3% year-on-year, the Thai index rebounded in the latter half of August as the appointment of the country's 31st premier became clearer.
At the end of August, the SET index stood at 1,359.07, up 2.9% from the previous month, with an average daily trading volume of around 44.4 billion baht. Foreign investors were net sellers of 6.13 billion baht and cashed out 123.6 billion baht year-to-date.
Fetco's investor confidence index (ICI) hovered back to the bullish zone at 132.51 last month, improving from the bearish zone seen in July, driven by the clearer political situation, the expected launch of stimulus measures and the recovery of the economy.
The August ICI, which anticipates the market condition over the next three months, was mostly influenced by the government's stimulus in driving the Thai stock market.
"The political situation, though clearer, remains uncertain, undermining the confidence the most, followed by the local economic slowdown and inflation," he said.
The survey results in August showed that foreign investors' confidence jumped 275% to 125.00, with that of retail investors surging 73.6% to 144.26. The confidence of proprietary and institutional investors was also up 28.4% and 32%, respectively, to 144.44 and 120.00.
Meanwhile, the government's digital wallet scheme seemed to make some progress and the US Federal Reserve showed clear signs of cutting its policy rate.
Mr Kobsak said external factors to monitor include the Fed's monetary policy on easing its rate and tensions in the Middle East.