Bangkok: Thai stocks, ignoring the war, rebounded by more than 1,500 points. The Stock Exchange of Thailand attributed this to the strengths of the new government, which has policies to boost investment and support the economy, as well as a robust number of Board of Investment (BOI) applications.
According to Thai News Agency, Mr. Sornpol Tulyasathien, Deputy Managing Director and Head of Corporate Strategy and Finance at the Stock Exchange of Thailand (SET), stated that from January to February 2026, the Thai stock index rose by 20% compared to the same period last year. However, in March 2026, the index declined to 15% due to concerns about the situation in the Middle East. Nevertheless, as of today, the Thai stock index has risen to 1,500 points, up 19%, as investors have overlooked the Middle East conflict and have already factored in the temporary ceasefire to some extent. Currently, the focus is on interest rate trends, with attention focused on the actions of the US Federal Reserve (Fed).
Mr. Sornpol pointed out that the reason the Thai stock market experienced a smaller decline than other markets is because Thailand does not have an AI bubble. Thailand has strengths such as a new government, it is a safe haven in many aspects, and Thai stocks offer an average dividend yield of over 4%, serving as a safe haven during periods of market downturns while still providing cash dividends. Furthermore, the Thai stock market has a diverse investor base, which remains a strength. In April, foreign investors still held 37% of Thai stocks.
"The Thai stock market has already absorbed much of the bad news. As for how much it will grow, there's still a lot of potential. For example, the large number of BOI (Board of Investment) applications received, if even a portion is implemented, would be enormous. And if new projects are developed, it will make Thailand more attractive to foreigners, boosting confidence and positively impacting the capital market, which typically responds first," Mr. Sornpol said.
Mr. Assadej Kongsiri, Director and Manager of the Stock Exchange of Thailand (SET), stated that the Thai stock market has the JUMP+ project which will help increase its attractiveness. Following discussions with Deputy Prime Minister and Minister of Finance, Mr. Ekniti Nitithanpraphas, there are plans to proceed with the TISA (Thai Individual Saving Account) project. This will benefit the capital market and the public and will be a permanent project, unlike the LTF fund which has a limited lifespan. Furthermore, it offers flexible investment options, allowing investors to choose between mutual funds or individual stocks. While it doesn't provide tax benefits, it serves as a valuable retirement savings plan.
Overall, the SET Index closed at 1,448.14 points in March 2026, down 5.24% from the end of February 2026. This reflected investor concerns over the conflict between the United States and Iran, as well as the impact of the closure of the Strait of Hormuz, which led to a rapid rise in global energy prices. However, the Thai stock market declined less than major Asian stock markets, supported by progress in the formation of a new government, which will enhance stability and flexibility in implementing the country's economic policies.
The average daily trading value of the SET and mai in March 2026 was 75,322 million baht, an increase of 95.69%. This resulted in an average daily trading value of 65,109 million baht in the first quarter of 2026, an increase of 52%. Foreign investors were net sellers of 39,754 million baht in March 2026. However, from the beginning of the year until the end of March 2026, foreign investors remained net buyers of 19,152 million baht. Foreign investors continue to account for the highest proportion of trading value at 53.85% of the total trading value, followed by domestic retail investors at 32.17%, domestic institutional investors at 7.36%, and securities firms at 6.62%.
The forward P/E ratio of the Stock Exchange of Thailand at the end of March 2026 was 96 times, higher than the average of Asian stock markets which was 12.67 times. The historical P/E ratio was 16.40 times, close to the average of Asian stock markets which was 16.36 times. The dividend yield was 25%, higher than the average of Asian stock markets which was 2.94%.