Thailand's SETI index rises 0.5% to 1,258.62 at open

Thailand's SETI index rises 0.5% to 1,258.62 at open

Thailand's SETI (Stock Exchange of Thailand Index) opened on September 2, 2025, at 1,258.62, marking a 0.5% increase from the previous day's close. This upward movement comes amidst a backdrop of economic challenges and political uncertainty, which have been the dominant themes in Thailand's financial landscape.

The rise in the SETI index can be attributed to several factors. Firstly, the passage of the 2026 fiscal budget by the House of Representatives on September 1, 2025, has alleviated concerns among investors over potential budget delays. This move is expected to provide a boost to market confidence, as it addresses one of the key uncertainties that have been weighing on Thailand's economic outlook [1].

However, political instability remains a significant concern. The Constitutional Court's ruling to remove Paetongtarn Shinawatra from her position as Prime Minister on August 30, 2025, has led to increasing competition between Pheu Thai and Bhumjaithai to appoint a new Prime Minister. This political turmoil could lead to a House dissolution and fresh elections within a few months, potentially causing short-term disruptions and putting additional pressure on Thailand's economic growth momentum [2].

Economic growth in Thailand is projected to average just 2% in 2025, significantly lower than that of neighboring countries such as Indonesia and the Philippines. Thailand's economy is under pressure from various factors, including US President Donald Trump's tax policies and border clashes with Cambodia [2].

The Bank of Thailand (BOT) has been closely monitoring the economic situation and has indicated that it may consider further rate cuts if there are signs of a significant slowdown in economic growth or unexpected shocks. While some analysts predict a 0.25% rate cut in Q4 2025, others, such as Tim Leelahaphan of Standard Chartered Bank (Thailand), expect a 0.5% rate cut at the MPC meeting on October 8, 2025, due to the ongoing political uncertainty [1].

Thailand's credit rating is also at risk of being downgraded by Moody's in the coming quarters due to growing political uncertainty and ongoing economic stagnation. Nomura Holdings Inc. has warned that Thailand's credit rating may be downgraded, citing these factors, which could have implications for the country's economic outlook and investor confidence [1].

Despite these challenges, the SETI index's recent rise suggests that investors remain optimistic about Thailand's economic prospects. However, the political and economic uncertainties continue to pose significant risks that need to be closely monitored.

References:
[1] https://www.nationthailand.com/business/economy/40054896
[2] https://asianews.network/thailands-economy-faces-pressure-amid-political-turmoil-with-potential-interest-rate-cut/