Thailand Stocks Sink toward 3-Week Trough

Thailand's SET 50 Index fell 13 points or 1.3% to 957 on Thursday afternoon, extending losses from the prior session and nearing a three-week low. A sharp drop in U.S. stock futures pressured sentiment, despite Wall Street closing at another high on Wednesday following President Trump’s extension of the U.S.–Iran ceasefire. Traders largely brushed aside supportive developments, including Moody’s upgrade to Thailand’s outlook, as foreign outflows persisted. Concerns also mounted over the country’s fragile growth trajectory, expanding just 2.4% last year and lagging regional peers. Meanwhile, Finance Minister Ekniti Nitithanprapas noted that policy space is limited, with public debt at 66% of GDP, close to the 70% ceiling, raising fears it may need to be lifted. Industrial services, process industries, transport, and consumer services led the decline. Major laggards included Siam Cement (-7.7%), Thai Oil (-3.9%), Gulf Development (-3.4%), and Delta Electronics (-3.3%).

Thailand’s SET 50 Index plunged 8% to around 900 points on Wednesday, hitting a four-week low, as intensifying conflict in the Middle East sparked a sharp risk-off wave across Asian markets. The steep drop triggered a 30-minute trading halt on the Stock Exchange of Thailand, with rules stipulating another suspension if losses deepen to 15%. Investors are increasingly uneasy about the duration and economic fallout of the Iran war, particularly for Thailand, one of the region’s most energy import-dependent economies, while potential airspace disruptions threaten the country’s vital tourism sector. The selloff has also effectively erased the nearly 14% rally that followed Prime Minister Charnvirakul’s decisive election victory last month. Losses were compounded by an unwind in AI-linked plays, with Delta Electronics, down 12.7%, among the major drags. Other notable losses came from heavyweight names, such as Gulf Development and Airports of Thailand, dropping around 10% each.

Thailand’s SET 50 Index climbed 1.48% to around 1,015, reaching its highest level since January 2023, as broad-based sector gains lifted market sentiment. Retail and energy stocks led the rally, with notable advances from Shopify (+0.55%), Delta Electronics (+4.03%), PTT Public (+2.72%), and Advanced Info Service (+3.55%). Investor optimism was further supported by robust foreign investment activity. In January, applications totaled THB 33.8 billion, up 46% year-on-year. Many investments focus on advanced technology, AI, EVs, clean energy, and agri-business, supporting the government’s push to attract foreign capital into strategic growth sectors. Earlier this week, US tariff developments added to positive sentiment. Caretaker Finance Minister Ekniti Nitithanprapas stated that the new 15% uniform import tariffs, is expected to boost GDP above 2% and stimulate exports over the short term, supporting growth in the first half of the year.