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- SET imposes a short-selling ban and new price limits to stabilize Thailand’s market amid global volatility.
- Thailand’s stock market sees significant turbulence, prompting $1 billion in buybacks by 30 companies.
- Global markets decline sharply, with China’s 10% drop and Taiwan’s 9.8% fall, causing widespread market instability.
The Stock Exchange of Thailand has put a stop to short selling to shield its stock market from the global volatility. This action comes after the Thai stock exchanges, as well as world stock markets, have recorded a decline. Moreover, to regulate the market, the SET’s Board of Governors (BoG) set new limits and differently adjust the price bands. These measures will help in reintroducing the confidence of the investors in the market.
Short-Selling Ban and Limits
The short-selling ban will be implemented on the period starting from 8th April to 11th April 2025. Besides the ban, the BoG has also provided new ceiling and floor limits for the markets on the SET, MAI, and TFEX exchanges. These adjustments are made with the view of easing the problem of downward planning, which is normally experienced in many industries. The SET shall constantly ensure that it follows the announcements and modify the measures in case of necessity.
This action has resulted from the recent volatile period that Thailand experienced in its stock market. In the last month, 30 listed firms plan to buy back nearly $1 billion of their shares. The stock repurchases are intended to support the stock value and boost the confidence of the shareholders. However, there are still indications that the global market plays an influencing role in the risks that investors encounter in Thailand.
Global Decline Impacts SET
Major global stock markets are also pointed down. The Chinese stocks recorded the worst decline for a single trading day since 2008 when they plunged by as much as 10% yesterday. Taiwan’s market was also down by 9.8 %; this caused the circuit breaker to be triggered. Similar trenches in Japan led to stopping trading in Nikkei 225 futures. The stock futures market in the UK decreased by over 4% due to the problems; Germany’s stock futures in Europe also declined.
The current market challenges owe their existence to the strategies implemented by the current president of the United States. Such tariffs have caused many markets to fall in many parts across the globe. Despite the effects on the global market, Trump has supported his policies with the following remark:
“Some day people will realize that Tariffs, for the United States of America, are a very beautiful thing.”
Nevertheless, given the continuing fluctuations in the global markets, authorities’ decision to impose the short selling ban and to introduce variable price limits are considered justified. It is to enhance the stability of the Thai stock market against global market fluctuations. The SET has the objectives of putting stability in place and increasing investor confidence when the market is unpredictable.
