Thailand’s SET index extends losses to 1%

Thailand’s SET index extends losses to 1%

Thailand’s SET index (SETI) continued its downward trend, extending losses by 1% on July 2, 2025. The live stock price of the Thailand SET index stood at 1,254.70, marking a significant decline from its previous levels. The index’s performance has been influenced by various economic and geopolitical factors, including the impact of U.S. tariffs and the global economic slowdown.

One of the key drivers of the SET index’s decline is the recent downgrade of Airports of Thailand PCL (BK:AOT) by JPMorgan. The investment bank cited overvaluation concerns as the reason for the downgrade, which has had a ripple effect on the broader market. This move has contributed to the overall volatility and uncertainty in the Thai stock market [1].

Additionally, Thailand’s economy expanded faster than expected in the second quarter of 2025, growing by 2.8% from a year earlier. However, the National Economic and Social Development Council (NESDC) has adjusted its full-year forecast to 1.8% to 2.3%, indicating a potential slowdown in the second half of the year due to the impact of U.S. tariffs. The uncertainty surrounding the tariffs has been a significant concern for investors, leading to a cautious approach in the market [2].

The Thai central bank has also been proactive in addressing the economic slowdown by cutting its benchmark interest rate. The latest reduction brought the rate to a near three-year low of 1.50%, with further easing expected later this year. This move is aimed at stimulating economic growth and supporting businesses, but its impact on the stock market remains to be seen.

In conclusion, the Thailand SET index’s 1% loss on July 2, 2025, is a reflection of the broader economic and geopolitical uncertainties affecting the region. While the Thai economy showed resilience in the second quarter, the outlook for the remainder of the year remains cautious. Investors are advised to closely monitor the evolving situation and consider the potential impact on their portfolios.

References:
[1] https://www.investing.com/indices/thailand-set
[2] https://www.marketscreener.com/news/thailand-s-q2-growth-beats-forecast-but-faces-slowdown-in-h2-on-tariffs-ce7c51dfdc8aff23