BANGKOK, 8 February 2018 (NNT) – Analysts at the Federation of Thai Capital Market Organization (FETCO) have assessed that volatility in the Thai stock market over the past few days will be short lived as it was spurred by a sudden drop in the US market brought on by concerns over a hike in the country’s government bond repurchase rate.

FETCO President Worawan Tharaphum indicated large fluctuations in the Thai stock market over the past 1-2 days was due to severe movements in the US, where investors have been moving capital away from high-risk assets and the inflation rate has reached a high, likely accelerating the Federal Reserve’s decision to adjust upward the nation’s policy interest rate. Nonetheless, she said effects from the volatility in Thailand will be short term as its own economy is faring well.

Investor confidence for the next 3 months has been projected at 156.62 points, up 1.74 percent and remaining in an uptrend for a third month. The optimism is due to an influx of foreign capital, economic growth and the strong performance of registered companies. Risk factors at this time include foreign investment and the general election.

A survey of analysts and fund managers has projected the Thai stock market will move in the range of 1,716 and 1,925.74 points this year depending on foreign capital.