The Stock Exchange of Thailand (SET) recently implemented temporary measures (April 8-11, 2025) to stabilize the market amidst global uncertainties. These measures include:
- Adjusting the Ceiling/Floor limits by half from ±30% to ±15%.
- Modifying the Dynamic Price Band range from ±10% to ±5%.
- Temporarily prohibiting short selling of all securities, except for Market Makers.
These measures have had a positive impact on the stock market over the past three days (April 8-10), with daily trading values consistently exceeding THB 50 billion baht.
A source within the financial market disclosed that on April 10, the SET was discussing the possible extension or alteration of these temporary measures, especially after President Trump’s announcement to delay import tariffs by 90 days, leaving them at 10% for non-retaliating countries.
Professor Kitipong Urapeepatanapong, Chairman of the SET, stated that the effectiveness of these measures needs further evaluation and emphasized the importance of ongoing monitoring and readiness. He noted that these urgent measures were necessary, suggesting that without them, the Thai stock market condition might have worsened.
Professor Dr. Pornanong Budsaratragoon, Secretary-General of the Securities and Exchange Commission (SEC), confirmed that the SEC and SET are closely monitoring the financial market situation on a daily basis.
Gun Hathaisattha, Investment Strategist at CGS-International Securities (Thailand), believes that extending the measures will likely have a “positive impact” amidst uncertainties from both international and domestic factors, including economic forecasts and recent natural disasters.
With revised targets from brokers (CGSI adjusted this year’s index target to 1,200 points and GDP growth to just 1.5% year-on-year), reducing the Ceiling/Floor by half is expected to limit downside risks.
However, if financial markets decide to lift these volatility measures in the SET, mai, and TFEX, it could be an opportunity for retail investors to learn more about short selling, particularly in the current economic and market climate, especially in TFEX.
Natapon Khamthakrue, Senior Director of Investment Analysis at Yuanta Securities (Thailand), advised that the SET should consider extending the short selling ban and Ceiling & Floor measures due to continuing volatility in global and Thai stock markets.
The short selling ban effectively prevents downward pressure on the Thai stock market from excessive sell-offs. Restricting Ceiling & Floor helps mitigate single-stock volatility and reduces investor losses, particularly in high-leverage financial instruments in the derivatives market.
Overall, the SET’s measures appear sufficient, as they help curb selling pressure and limit downside risks in the Thai stock market while ensuring investor confidence through controlled short selling without the intrusion of Naked Shorts.
