BANGKOK, Oct. 6 (Xinhua) -- Thailand's stock investor confidence weakened in September as international conflicts and volatility in the baht currency weighed on market sentiment, a survey showed on Tuesday.

The investor confidence index, which predicts market conditions over the next three months, stood at 148.72 in September, down from 165.89 in the August survey and retreating to the "bullish" zone, according to the Federation of Thai Capital Market Organizations (FETCO).

Investor morale declined across all categories, with retail investors down 4.1 percent, proprietary investors down 11.6 percent, domestic institutional investors down 9.8 percent, and foreign investors down 12.5 percent, the FETCO said in a statement.

Despite the downtrend, investors saw fund inflows as the strongest driver of market sentiment, followed by government economic stimulus measures and earnings from publicly traded companies.

The Stock Exchange of Thailand index drew early support in September from rising optimism in artificial intelligence and data center investments, which boosted electronics shares, said FETCO chairman Paiboon Nalinthrangkurn.

However, the market came under pressure in the latter half of the month from uncertainty surrounding U.S. monetary policy direction, rising yields on U.S. government bonds, ongoing Middle Eastern tensions, and concerns over local flood impacts, Paiboon said.

Looking forward, Paiboon said investors are tracking third-quarter earnings projections for listed companies, along with the government's economic stimulus measures and their implementation.

He added that eyes remain on capital deployment trends in tech sectors and data centers, as well as the impact and risks of domestic flooding on economic activity and supply chains. ■

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