Stock market in Thailand predicted to start the week with a declining trend on Monday
Thai Stock Market Tumbles Amid Global Uncertainties
The Thai stock market experienced a significant drop in the past week, with the SET 50 index falling more than 25 points or 2 percent in consecutive trading days. This follows a period of positive foreign investor inflows in July, as Thai stocks were seen as "cheap," encouraging slow and steady accumulation by investors.
Last Friday, the SET had a significant drop, with declines across sectors including consumer, finance, industrial, property, resource, service, and technology. Among the active stocks, many experienced significant price changes, such as Advanced Info, Thailand Airport, Asset World, Banpu, Bangkok Bank, Bangkok Dusit Medical, Bangkok Expressway, B. Grimm, BTS Group, CP All Public, Charoen Pokphand Foods, Energy Absolute, Gulf, Kasikornbank, Krung Thai Bank, Krung Thai Card, PTT Oil & Retail, PTT, PTT Exploration and Production, SCG Packaging, Siam Commercial Bank, Siam Concrete, Thai Oil, True Corporation, TTB Bank, and PTT Global Chemical.
The NASDAQ Composite and the Dow Jones Industrial Average also experienced a sharp decline, with the NASDAQ Composite tanking 472.27 points or 2.24 percent to close at 20,650.13, and the Dow Jones Industrial Average tumbling 542.42 points or 1.23 percent to finish at 43,588.58. The S&P 500 dropped 101.38 points or 1.60 percent to end at 6,238.01.
The sell-off on Wall Street came amid concerns about the economic impact of President Donald Trump's tariffs and a weak American jobs report. The White House announced new tariff rates on dozens of countries, ranging from 10 percent to 41 percent, which pressured Asian shares, contributing to a 0.4% drop in the MSCI Asia-Pacific index.
However, recent trade deals with the EU, Japan, and South Korea have somewhat cushioned the overall impact, and markets have factored in that tariff levels could be renegotiated over time. Ahead of a US presidential deadline to possibly increase tariffs on Chinese imports after a 90-day truce ended, Asian markets saw a rise in mid-August as investors awaited US economic data and Federal Reserve interest rate decisions.
The Fed is expected to consider rate cuts to balance economic growth and inflation concerns amid trade uncertainties. These tariff tensions remain a key variable affecting corporate profits in Asia, including a potential 1% hit to profits in Thai companies if high US import taxes persist.
Interest rates in Thailand may be cut 1-2 times in the second half of 2025 by 0.25-0.50%, potentially supporting debt securities and easing market pressure. Forecasts predict a mild decline to 803 points by the end of Q3 2025 and further to about 759 points in 12 months, reflecting some cautious sentiment.
In summary, the Thai stock market has fallen more than 25 points or 2 percent in consecutive trading days, but there is potential for recovery if US tariffs lessen. Asian markets are experiencing downward pressure from new US tariffs, but recent trade deals have somewhat cushioned the overall impact. The tariff tensions remain a key risk for Asia, directly impacting sectors and company profits, with ongoing negotiations influencing market outlooks.
The declines across Thai sectors, such as finance and technology, mirrored the global sell-off, with the SET index reflecting a tumble in the NASDAQ Composite and the Dow Jones Industrial Average. Asian markets are also feeling the brunt of the new US tariff rates, particularly in the technology and industrial sectors, creating uncertainties for corporate profits in the region.
