SET SHOWING MORE SIGNS OF STABILITY

The Stock Exchange of Thailand continued to decline in March, but the fall was much smaller than in the first two months of the year.

- TISCO SECURITIES

The SET index started March at 1,203.72 points before ending the month at 1,158.09, declining 45.63 points or 3.8%.

The key drag on the market was fear related to the trade war ratcheted up by US President Donald Trump. In early March, Trump announced immediate 10% tariffs for Canada, Mexico and China. This heightened global market fears, including in the US.

In Thailand, political conflict heated up with a no-confidence debate taking place in late March. Although there were no big changes for the coalition parties, we observed some inner conflicts.

On March 28, a massive earthquake centred in Myanmar shook Bangkok. Confidence was dented, especially in the fragile property market, and negative sentiment affected the tourism industry as well.

The SET closed down 1.5% on the last day of trading in March. Average daily turnover plummeted 26% from the month before to 38.1 billion baht.

On April 2, Trump announced tariff rates for more than 80 countries that shocked the world. The highest rate was 49%, while a 10% base was announced for all countries.

Thailand faces a 36% tariff rate for all goods imported by the US, much higher than most economists predicted and exceeding the rates applied to many other countries.