Attack on Iran puts pressure on Thai stocks

Heightened fears of a broader conflict

- NUNTAWUN POLKUAMDEE WICHIT CHANTANUSORNSIRI

The Stock Exchange of Thailand (SET) is on high alert as the US bombing of Iran has raised fears of further attacks and intensifying conflict in the Middle East, leading global oil prices to spike.

Heightened fears of a broader global geopolitical conflict following a direct military strike by the US on Iran caused the benchmark index to fall by 1.3% in early morning trade to 1,053.79, its lowest level since the Covid-driven crash in March 2020, when the index plunged to 969.08.

The sell-off prompted the SET to convene an emergency board meeting and introduce temporary market-stabilisation measures aimed at curbing panic and volatility.

In a press conference early yesterday, the SET announced that it will temporarily reduce the ceiling and floor limits for stocks, securities, and futures products from 30% to 15%, and tighten the dynamic price band from 10% to 5% during June 23-27. These measures are designed to limit excessive price swings and restore investor confidence.