(Bloomberg) -The Stock Index of the Thai benchmark stock on the eve of a technical bear market in the midst of investor concerns about the growth prospects for the second-largest Southeast Asia economy.
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The Thai Stock Exchange Index closed 1% lower on Friday, after falling short more than 20% of the October peak during Intraday trading. PCL Thailand Delta Electronics shares and PCL's advanced information service were the largest contributors to the slide.
Foreign investors have continued to sell stocks in the equity market that performed worst in Asia in 2025 after withdrawing nearly $ 10 billion in the last two years. Concerns are increasing that the economy of Thailand, which failed last year's growth targets, will be further affected by US President Donald Trump's promises to force tariffs on different nations.
“The ongoing weakness in the set is driven by the weak Thailand economy, as government policies over the last decade have not led to any structural improvements,” said Pon Van Compernolle, a management partner in the emerging Asian Fund at RVC. “Is evidence of lack of faith in the capital markets in the heart of a continuous sales spree by foreign and local organizations.”
World funds have sold $ 381 million local shares on a net basis so far this year, according to data complied with Bloomberg on Thursday.
The country is exposed to bilateral US tariffs as it has advanced import levels on US goods than those whose loads are relevant. Government agencies are examining measures to protect the interests of Thailand's trade, while the prime minister of PaetonGtar Shinawatra has appealed for a “closer” co -operation between the Bank of Thailand and the Ministry of Finance to clean up growth.
The decline in Thailand stocks was part of a wider sale in the region as Trump's latest threats on tariffs pressed. The Indonesian benchmark stock index also fell, ending the day in a bear market. That has triggered a decline of more than 10% in the MSCI ASEAN index of a climax in September.
In Thailand, “consumer debt remains stubbornly high and with a slowing economy, it is difficult for this to deteriorate quickly enough,” said John Foo, founder of Valverde Investment Partners PTE. “The market has also been hit with corporate governance issues” relating to some “favorite stocks” that many foreign investors have.