Analysts downbeat as SET nosedives

Downside risks remain for the Stock Exchange of Thailand (SET) index after it plunged to a five-year low on Tuesday on heightened fears of a global recession as trade anxiety ramps up, say analysts.

- NAREERAT WIRIYAPONG NUNTAWIN POLKUAMDEE

As other Asian exchanges recovered from a global sell-off, the Thai bourse contracted nearly 6% to a low of 1,059 points during the morning session in catch-up selling from a holiday on Monday, while Indonesia returned from a week-long holiday to 9% losses.

The decrease was mainly driven by heightened volatility from steep US tariffs. Volatility has surged, with US$10 trillion wiped away from global equities after the US announcement last week, amid fears of a global recession and escalating trade wars.