Bangkok: Thai stocks, despite ongoing global conflicts, surged more than 1,500 points. The Stock Exchange of Thailand attributes this resilience to the strengths of the new government, which has policies aimed at boosting investment and supporting the economy, coupled with a significant 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), indicated that the Thai stock index saw a 20% rise from January to February 2026 compared to the previous year. Although there was a decline to 15% in March 2026 due to concerns over the Middle East situation, by April 10, 2026, the index had risen to 1,500 points, marking a 19% increase. This rebound is attributed to investors overlooking the Middle East conflict, factoring in a temporary ceasefire, and focusing on interest rate outlooks. The impact of the oil crisis, including production costs and inflation, remains a top priority for monetary policy, with investors closely watching the US Federal Reserve's actions. Initially expecting 1-2 interest rate cuts, most now predict no cuts, with some suggesting a possible rate hike, impacting risky assets like stocks, gold, and Bitcoin.
Mr. Sornpol noted that the Thai stock market's smaller decline compared to other markets is due to the absence of an AI bubble. Thailand's strengths include a new government and the status of a safe haven, with Thai stocks offering an average dividend yield of over 4%, serving as a refuge during market downturns while providing cash dividends. The Thai stock market also benefits from a diverse investor base, with foreign investors holding 37% of stocks in April. The government has major projects planned, such as the land bridge project and bringing Disneyland to the EEC (Eastern Economic Corridor).
He emphasized that the Thai stock market has already absorbed much of the negative news and has significant growth potential. The high number of BOI applications, if partially implemented, could have a substantial impact. New projects, including capital market strengthening, startup investment promotion, infrastructure funds, and renewable energy initiatives, could enhance Thailand's attractiveness. Promoting the Climate Change Act, the Clean Air Management Act, and carbon credit sales, initially focusing on Bangkok and industrial estates, could boost confidence and positively impact the capital market, which tends to respond first.
Mr. Assadej Kongsiri, Director and Manager of the Stock Exchange of Thailand, mentioned the JUMP+ project, which aims to increase the market's attractiveness. In discussions with Deputy Prime Minister and Minister of Finance, Mr. Ekniti Nitithanpraphas, plans for the TISA (Thai Individual Saving Account) project were outlined. This initiative will benefit the capital market and the public, serving as a permanent project with flexible investment options, offering valuable retirement savings despite not providing tax benefits.
In March 2026, the SET Index closed at 1,448.14 points, down 5.24% from February 2026. This decline reflected investor concerns over the US-Iran conflict and the impact of the Strait of Hormuz closure, leading to a rapid rise in global energy prices. However, the Thai stock market's decline was less severe than other major Asian markets, supported by the formation of a new government enhancing stability and flexibility in economic policy implementation.
The average daily trading value of the SET and mai in March 2026 was 75,322 million baht, a 95.69% increase. This resulted in an average daily trading value of 65,109 million baht in the first quarter of 2026, up 52%. Foreign investors were net sellers of 39,754 million baht in March 2026, but from the start of the year to the end of March 2026, they remained net buyers of 19,152 million baht. Foreign investors accounted for the highest trading value proportion at 53.85%, 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 Asian stock markets' average of 12.67 times. The historical P/E ratio was 16.40 times, close to the Asian average of 16.36 times. The dividend yield was 25%, higher than the Asian markets' average of 2.94%.