SET posts weakest performance in region

Liquidity declined sharply in 2025

- NUNTAWUN POLKUAMDEE

The Stock Exchange of Thailand (SET) continues to face significant structural and cyclical challenges this year, after posting the weakest performance in the region in 2025.

With the index falling more than 10% over the first 11 months of 2025, market participants see an urgent need to restore investor confidence and improve the competitiveness of the Thai bourse.

Multiple factors have contributed to the SET's underperformance, including prolonged domestic political uncertainty, the impact of US tariff policies, ongoing global trade tensions, geopolitical risks, concerns over corporate transparency and governance, and disruptions from natural disasters.

The combined effect of these factors eroded the attractiveness of Thai equities compared with regional peers.

Market liquidity has deteriorated sharply, with average daily trading value shrinking to 30-40 billion baht from nearly 100 billion baht at its peak. As a consequence, Thailand lost its position as the most liquid equity market in the region.

The decline in turnover has put pressure on securities firms, with more than half expected to post operating losses, raising the likelihood of industry consolidation in 2026.