BANGKOK, Jan 6 (Reuters) – Investor confidence in Thai financial markets for the next three months has dropped to a five-month low, dented by concerns over the Omicron coronavirus variant, a capital market group said on Thursday.

A survey in December by the Federation of Thai Capital Market Organizations(FETCO) showed its investor confidence index fell to 129.53 from 135.16 in the previous month, but remains in the bullish zone.

Thailand’s tourism-reliant economy faces fresh risks from Omicron, as the government on Thursday raised its COVID-19 alert level due to rising infections driven by the variant.

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“Local economic recovery and listed company’s earnings growth are supportive factors for the Thai stock market this year, while the spread of the Omicron variant clouds sentiment,” federation chairman Paiboon Nalinthrangkurn told a briefing.

Foreign fund inflows and more economic stimulus measures may help Thailand’s stock index reach 1,800 this year, Paiboon said.

Thailand’s main stock index (.SETI) gained 14.4% last year, but foreign investors sold a net 49 billion baht ($1.46 billion)of Thai shares over the period.

($1 = 33.4600 baht)

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Reporting by Satawasin Staporncharnchai Editing by Ed Davies

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