Persistent Downward Trend Potentially Extends for Thai Stock Market
Thai Stock Market Struggles Amidst Global and Domestic Challenges
The Thai stock market faced another challenging day on Tuesday, with the SET finishing modestly lower. The index shed 6.55 points or 0.53 percent, extending its losses in four consecutive sessions. The market is currently just above the 1,235-point plateau.
The weakness in Asian technology stocks, as reflected in the Thai market, is driven by a combination of global and domestic factors.
Sluggish global growth and geopolitical tensions have been pressuring the Thai stock market, including technology stocks. US import tariffs and other trade-related issues weigh on sentiment in export-dependent sectors, such as technology components and electronics.
The Thai Baht’s appreciation against the US dollar by 5-6% in 2025 reduces the competitiveness of electronics exports by making products more expensive in foreign markets. Renewed selling pressure, especially on technology stocks, follows reports of potential US government equity stakes in chip manufacturers, raising concerns about regulatory or intervention risks in the sector.
Unstable political conditions in Thailand undermine market confidence, further dampening stock performance. There is also a noted investor preference shift toward offshore investments with higher growth potential, which weakens local technology stock demand.
On the global front, the outlook for Asian markets is weak. The global forecast is clouded by economic concerns and trade tensions. In particular, the Jackson Hole Economic Symposium, starting on Thursday, is expected to bring important remarks from Federal Reserve Chair Jerome Powell, which could potentially impact the outlook for interest rates. Traders are also looking forward to the release of the Federal Reserve's latest monetary policy meeting minutes later today.
In the United States, the NASDAQ experienced a slump due to weakness in the tech sector. However, the Dow benefited from a surge by shares of Home Depot, up 3.5 percent. Despite missing on Q2 results, Home Depot maintained its full-year guidance.
On the commodities front, crude oil declined on Tuesday due to supply side concerns from OPEC unwinding 2.2 million barrels per day in voluntary cuts. West Texas Intermediate crude for September delivery was down $1.07 or 1.69 percent at $62.35 per barrel.
In the Thai market, among the active stocks, Advanced Info slumped 1.36 percent, while Thailand Airport gained 0.66 percent, and True Corporation jumped 1.85 percent.
As the market navigates these challenges, investors will continue to closely monitor global and domestic developments for signs of recovery or further downturn.
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