The president of the Stock Exchange of Thailand (SET), Asadej Kongsiri, recently underscored the effectiveness of temporary trading measures aimed at reducing market volatility. He also emphasized the robust fundamentals of Thai equities, particularly those within the SET100 Index.
Asadej highlighted that the Thai stock market outperformed many others this week, attributed in part to a national holiday on Monday that offered a moment to evaluate the impact of U.S. tariff policies on global markets.
With a revised trading limit of 15% for price movement in the Thai stock market, Asadej noted that only two securities in the SET100 Index approached the lower threshold on Tuesday, reflecting the underlying strength of the companies represented. He committed to ongoing surveillance of market dynamics, especially during the upcoming Songkran Holiday, urging investors to make decisions with caution and rationality in this volatile setting.
This week’s trading volume in the Thai stock market saw an uptick, with discussions emerging regarding extending the short-selling ban. The practice has faced scrutiny as a potential channel for illegal naked short-selling, prompting calls for its reform along the lines of changes recently enacted in South Korea. There, short-selling resumed following a lengthy suspension.
Concerns persist that prolonging the short-selling ban may deter foreign investment, notably from index inclusion providers such as MSCI. Asadej pointed out that South Korea had experienced a similar impact when its presence in the MSCI Index was reduced. Consequently, the SET is thoroughly examining how to best accommodate investor interests while ensuring market integrity.
The SET and Ministry of Finance also in talks about the ongoing situation in the capital market. Pichai Chunhavajira Deputy Prime Minister of Thailand and Ministry of Finance has assigned the Thai stock exchange to monitor and find best solution for the market as well.
