Thailand’s stock exchange operator is exploring various measures to bolster the market amid escalating political turmoil that is dampening investor confidence.
“We aim to enhance liquidity and attract investors back through effective communication,” said Asadej Kongsiri, President of the Stock Exchange of Thailand, during a Bloomberg TV interview on Friday. He also noted that a short-selling ban is unlikely to be considered at this time.
The exchange is also contemplating regulatory adjustments for products like treasury stocks and collaborating with government agencies to encourage private sector reinvestment, aiming to revitalize the economy.
Investor sentiment remains cautious following Prime Minister Paetongtarn Shinawatra’s recent suspension from office. The SET Index is currently the worst performer globally this year, with concerns about the country’s sluggish economic growth persisting. Factors such as high household debt, declining tourism, and weak consumer spending further contribute to economic uncertainties, along with ongoing trade negotiations with the US.
Foreign investors have sold Thai equities for nine consecutive months through June, net offloading $3.9 billion during this period. As a result, the SET Index has fallen approximately 20% in 2025.
Additionally, the initial public offering (IPO) market in Thailand has slowed amid domestic and external uncertainties. So far this year, new share offerings have raised $32.8 million, a significant decline from the $799.7 million raised for the entire 2024, based on Bloomberg data.
“The IPO pipeline remains relatively strong, but timing issues have led to delays,” Mr. Asadej explained. He expects fundraising activities to rebound once political and economic uncertainties ease.
The exchange has also been working with authorities, including the Securities and Exchange Commission and anti-money laundering agencies, to streamline procedures for addressing corporate misconduct, as part of ongoing efforts to improve governance standards.
