Thai stock market tumbles amid US tariff concerns
The Stock Exchange of Thailand (SET) today experienced a significant drop in share prices amid concerns over a potential trade war following tariff increases by the US government. The SET Index fell by 42.30 points or 3.76%, reaching 1,082.91 shortly after opening.
The Thai market resumed trading after a three-day break, while other global markets were unsettled yesterday, April 7, due to fears of a recession stemming from US President Donald Trump’s policies.
Gulf Energy led the declines, with its shares decreasing by 4.50 baht, or 10%, to 40.50 baht. Kasikornbank shares fell by 7 baht, or 4.39%, to 152.50 baht, and SCB X, formerly known as Siam Commercial Bank, dropped by 5 baht, or 4.08%, to 117.50 baht.
Yesterday, April 7, the SET announced temporary restrictions on short selling and amendments to trading rules to manage volatility as the US tariffs affected global markets. The short-selling ban, applicable to all securities except market makers, and a tighter range for stock movements are in place from today, April 8, until no later than April 11.
These measures aim to reduce potential market fluctuations and allow investors time to evaluate their reaction to the US tariff measures that initiated a worldwide market downturn, as explained by the exchange.
Thailand faces a 36% tariff, one of the highest in the region. Last year, the country’s trade surplus with the US was US$45 billion (approximately 1.6 trillion baht).
Before the announcement of tariffs by the Trump administration, Thailand’s stock market was already underperforming globally this year, with investors retreating amid declining corporate profits and an uncertain economic outlook.
Last week, the SET index dropped by 4.3%, bringing this year’s losses to nearly 20%, reaching a five-year low.
The exchange stated it would continue to monitor the market and adjust these measures as necessary based on current market conditions. The temporary measures extend to the SET’s other platforms, including the Market for Alternative Investment and Thailand Futures Exchange.
The SET expressed confidence that the new prudential measures would effectively stabilise market conditions and strengthen investor confidence, reported Bangkok Post.
Separately, the Securities and Exchange Commission confirmed its close coordination with the exchanges, noting that the temporary measures would help address volatility in both the spot and futures segments of the stock market.
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