Bangkok: The Stock Exchange of Thailand (SET) acknowledges that the increase in diesel prices will affect listed companies and advises them to quickly communicate with investors, emphasizing that Thai stocks remain fundamentally strong.
According to Thai News Agency, the SET manager stated that the Thai stock market remains volatile due to fluctuations in the Middle East, with foreign capital outflows totaling 30 billion baht in the past two weeks. However, he emphasized that Thai stocks still have strong fundamentals, with the index up 7-8%, ranking third in Asia. He also acknowledged that any government adjustment to diesel prices would impact listed companies and urged the SET to expedite communication with investors to build confidence.
Reporters reported on the Thai stock market, noting that the SET Index closed the morning session at 1,437.12 points, an increase of 32.10 points or 2.28%, with a trading value of 41,723.84 million baht.
Mr. Assadej Kongsiri, Director and President of the Stock Exchange of Thailand (SET), stated that although the Thai stock index rose today, the overall picture remains highly volatile and uncertain due to the ongoing conflict in the Middle East, the end of which remains unclear, and the possibility of further involvement. Meanwhile, foreign capital flows show natural volatility as investors seek to shift capital to safer assets. Over the past two weeks, there has been an outflow of approximately 30 billion baht, following inflows of nearly 60 billion baht since December. The SET emphasized that the fundamentals of the Thai economy remain strong, and the index has shown a positive growth of approximately 7-8% year-to-date, ranking third highest in Asia. This reflects foreign investors' confidence in the country's fundamentals and the clearer political situation.
Regarding energy security and government mitigation measures, following a meeting with the Middle East Situation Management Center (MERCMC) to assess the impact on the Thai economy, the Ministry of Energy confirmed that Thailand has sufficient oil reserves for at least 100 days of use. The localized oil shortages were attributed to panic buying and hoarding, hindering transportation, and not to a systemic shortage. The government team has prepared contingency plans for both oil and electricity to reassure the public.
Regarding the 15-day diesel price freeze at 29.94 baht per liter, which is expiring today, and the initial predictions that the government will adjust the subsidy, it is not yet possible to assess the impact at this time. However, it is acknowledged that there will definitely be an impact, as some factories have already slowed down operations. Nevertheless, in this situation, listed companies on the Stock Exchange of Thailand should communicate information and policy changes to investors. Investors should closely monitor news and carefully analyze information in both the short and long term before making investment decisions.