On Tuesday, share prices at the Stock Exchange of Thailand plummeted amid concerns of an impending trade war following increased tariffs by the US administration.
The SET Index sharply fell by 42.30 points, or 3.76%, to 1,082.91 shortly after trading commenced.
It closed the session down 50.62 points, or 4.5%, at 1,074.59. The day’s turnover reached 66.7 billion baht.
After a three-day break, the Thai stock market resumed operations as global markets elsewhere showed signs of unease on Monday, worried about a potential recession due to policies from US President Donald Trump.
Leading the downturn was Gulf Development Plc, with its shares falling 5.00 baht, or 11%, to 40.50. Other major losses included Kasikornbank, dropping 8.5% to 146 baht; Krungthai Bank, declining 8% to 20.90 baht; and SCB X, formerly Siam Commercial Bank, which fell 7% to 114 baht.
Foreign investors sold off 2.47 billion baht worth of Thai shares on Tuesday.
Meanwhile, local institutions offloaded 4.76 billion baht, and brokerages shed 96 million baht worth of shares. In contrast, local retail investors picked up 7.34 billion baht in shares.
On Monday, the SET announced that it would temporarily halt short selling of stocks and implement stricter trading regulations to reduce market fluctuations, as reactions to the US tariff increases unsettled global markets.
Starting Tuesday and lasting until Friday at the latest, the ban on short selling will exclude market makers, and stock movement bands will be tightened, according to the exchange.
These measures aim to lessen potential market volatility and allow investors time to gauge their reaction to the US’s aggressive tariff policies that have shaken markets worldwide.
Thailand faced a significant tariff rate of 36%, one of the highest in the region. Last year, the country’s trade surplus with the US amounted to $45 billion.
Even before the tariff hikes were announced by the Trump administration, Thailand’s stock market was already one of the poorest performers globally this year. Investors have been exiting, pushed by falling corporate profits and a bleak economic forecast.
The SET index saw a 4.3% drop last week, adding to this year’s losses, which have nearly reached 20%, marking a five-year low.
The exchange will maintain ongoing market monitoring and adjust its measures based on current market conditions, it noted. The temporary restrictions also apply to SET’s other trading platforms: the Market for Alternative Investment and the Thailand Futures Exchange.
Key changes to the trading rules include:
– The maximum and minimum price limits for stocks and unit trusts on SET and MAI have been reduced to +/-15% from +/-30%;
– The price band for foreign shares has been lowered to +/-30% from +/-60%;
– The price ceiling and floor for index futures/options and single stock futures have been cut to +/-15% from +/-30%;
– Daily price limits are no longer applicable to DR and DRx products;
– The range for the security-specific dynamic price band has been decreased from ±10% of the last executed price to ±5%;
– A prohibition on short-selling across all securities, with exceptions for market makers on SET, MAI, and TFEX.
The SET expressed confidence that these new regulations would stabilize market conditions and bolster investor confidence.
The Securities and Exchange Commission also stated that it is in close coordination with the exchanges, ensuring that these interim measures effectively address the volatility in both the spot and futures segments of the stock market.
