Bangkok: Thai stocks fell more than 10 points but stayed above the crucial 1,050 mark, even as the Stock Exchange of Thailand introduced measures to manage market volatility. The Finance Minister is monitoring the Middle East situation closely, expressing confidence in the resilience of Thailand's capital market.
According to Thai News Agency, Deputy Prime Minister and Minister of Finance Mr. Pichai Chunhavajira has been actively assessing the impact of the Middle East tensions on the economy, particularly focusing on the stability of financial and investment markets. In response to global uncertainties, the Stock Exchange of Thailand's Board of Directors implemented two temporary measures: reducing the ceiling and floor price range from ±30% to ±15% and adjusting the Dynamic Price Band from ±10% to ±5%. These measures aim to stabilize the market and will be in effect from June 23-27, 2025.
Mr. Pichai stressed that these actions are intended to provide investors with time to thoroughly analyze market information, not to hinder investments. Despite the stock market opening down more than 10 points and dropping to 1,053 points, following international markets after U.S. military actions in Iran, Mr. Pichai assured that the Thai market would endure with collective understanding and cooperation.
Mr. Pichai Lertsupongkij, Chief Commercial Officer of InnovestX Securities Co., Ltd., noted that while tensions in the Middle East have escalated, the Thai stock market has largely absorbed these negative developments. Crude oil prices, which opened at $80 per barrel, have adjusted slightly to $77.6 per barrel. Similarly, gold prices have seen minor adjustments. Mr. Lertsupongkij believes the Thai stock index is unlikely to dip below 1,050 points, with support levels set at 1,030 points and a psychological barrier at 1,000 points, if needed.
The current Thai political landscape also presents challenges. However, Mr. Lertsupongkij is optimistic that the stock market has already factored in many of these domestic issues, including political unrest and a potential cabinet reshuffle. There is speculation that the Monetary Policy Committee may consider a policy interest rate reduction in its June 25 meeting, which could provide further support to the stock market.
Krungthai XSpring's analysis indicates that the SET INDEX has declined by 30% to 1,067 points this year, a 47% drop from its peak of 1,576 points. Both external and internal pressures, such as Middle East tensions and Thailand's political situation, continue to affect market performance.