The Stock Exchange of Thailand (SET) faces ongoing structural and cyclical hurdles in 2026, following its record-low performance within the region in 2025.
After the index declined over 10% in the first 11 months of 2025, market stakeholders emphasize the urgent need to rebuild investor trust and bolster the competitiveness of the Thai stock market.
Several factors have driven the SET’s underperformance, including prolonged domestic political instability, the effects of US tariff policies, persistent global trade tensions, geopolitical uncertainties, corporate transparency and governance concerns, and disruptions caused by natural disasters.
These combined challenges have diminished the appeal of Thai equities relative to neighboring markets.
Market liquidity has also sharply declined, with average daily trading values dropping to between 30-40 billion baht from nearly 100 billion baht at its peak, leading Thailand to lose its status as the most liquid equity market in the region.
The decrease in trading volume has adversely affected securities firms, with more than half expected to post operational losses, raising prospects for industry consolidation in 2026.
Foreign investment remains subdued, with net outflows surpassing 100 billion baht in 2025 and totaling over 300 billion baht over the past three years. Global uncertainties continue to hinder the attraction of foreign capital.
SET President Asadej Kongsiri stated that the exchange is committed to attracting high-quality investors across all segments, but emphasized that the primary challenge is improving the attractiveness of Thai listed companies.
In response, the bourse has launched the Jump+ program, a key component of its three-year strategic plan aimed at enhancing corporate value, governance, and long-term competitiveness.
Meanwhile, US equities attracted substantial inflows in 2025, driven by technology stocks and artificial intelligence trends, while overall earnings of Thai-listed companies weakened, dampening investor sentiment, according to Mr. Asadej.
Rongrak Phanapavudhikul, Senior Executive Vice-President of the SET, noted that Thailand’s structural weaknesses are also reflected in its shrinking presence in global indices. MSCI has reduced Thailand’s weighting to only 19 stocks, and IPO activity has notably decreased.
Once a regional leader, Thailand’s IPO fundraising in 2025 is projected to total just US$348 million — the lowest in Southeast Asia, he said.
While investor confidence has shown some stabilization since mid-2025, Mr. Rongrak pointed out that improved sentiment doesn’t automatically lead to increased investment inflows. An additional challenge is the shifting investor demographics.
“The market is transitioning from Generation X investors, who favor dividend income and long-term holdings, to Generation Y and Z, who seek higher growth and are more comfortable with volatile assets like cryptocurrencies,” he explained.
Younger investors also have easier access to international investments through products like depositary receipts, which can result in capital outflows from domestic equities, added Mr. Rongrak.
Looking ahead to 2026, he identified four major challenges facing the Thai stock market: the country’s relatively sluggish economic growth compared to ASEAN peers, ongoing global trade disputes and geopolitical risks, the potential for Thai companies to pursue overseas listings, and the need to improve trust, confidence, and corporate governance to meet international standards — especially those outlined by the Organisation for Economic Co-operation and Development (OECD), which Thailand aims to join.
Mr. Asadej remarked that OECD evaluations have criticized a “tick-the-box” approach to governance among Thai firms. He stressed that genuine governance must be ingrained in corporate culture through ongoing effort.
To address these issues, he outlined the SET’s plan for 2026, focusing on four pillars: attracting quality demand, offering appealing supply, fostering a trusted market, and cultivating a supportive ecosystem — all aimed at restoring confidence and ensuring the long-term sustainability of the market.