Thailand’s stock exchange operator will look at various measures to support the market as a deepening political turmoil weighs on investor confidence.
“We are looking to enhance liquidity in the market and attract investors back through communication,” Asadej Kongsiri, the president of Stock Exchange of Thailand, said in a Bloomberg TV interview on Friday. However, “a short-selling ban is probably not on the table at the moment,” he added.
The bourse is also mulling changes to regulations for products such as treasury stocks and is working with government agencies to push the private sector to reinvest to help rejuvenate the economy.
Investors are wary of Thailand’s market outlook after Prime Minister Paetongtarn Shinawatra’s suspension from office this week. The benchmark SET Index is the world’s worst-performing gauge so far this year, while concerns over the country’s lagging economic growth lingers.
High household debt, decline in tourist arrivals and weak consumption add to growing uncertainty around trade negotiations with the US.
Foreigners have sold Thai equities on a net basis for nine consecutive months through June, dumping a total of $3.9 billion in that period. The SET Index has tumbled about 20% in 2025.
The initial public offering market in Thailand has also slowed down due to domestic and external uncertainties, Mr Asadej said. New share sales have raised $32.8 million so far this year, compared to the $799.7 million raised for the whole of 2024, according to Bloomberg-compiled data.
“The pipeline is still quite strong, but the timing is the one that’s in question. We’ve seen a lot of postponements of IPOs,” he said. He expects fund-raising activities to pick up once uncertainty eases.
The bourse has been working with authorities, including the Securities and Exchange Commission and the anti-money laundering office, to streamline the processes involved in bringing wrongdoers to the table as part of efforts to improve corporate governance.