Bangkok: Capital markets in Thailand remain vigilant as the nation approaches tomorrow’s critical prime ministerial vote. Investors are keenly observing the political landscape, but indications suggest that the market’s stability may not be significantly impacted by the impending changes in government leadership.
According to Thai News Agency, the Stock Exchange of Thailand (SET) President expressed confidence that political shifts will not derail the Thai stock market. Foreign investors, who are accustomed to Thailand’s political dynamics, continue to engage with the market. This year, 18 companies have filed with the Securities and Exchange Commission (SEC), with 10 receiving approval, underscoring a robust interest despite political uncertainties.
Mr. Asadej Kongsiri, Director and Managing Director of the Stock Exchange of Thailand, noted that the capital market sector is closely monitoring the political vote. However, he emphasized that political developments have not significantly impacted the market, as investors are primarily focused on economic fundamentals. Discussions at the Thailand Focus 2025 event highlighted that foreign investors are familiar with Thailand’s peaceful political environment and remain interested in its stock market, which is a prominent player in ASEAN.
The formation of a new government will prompt discussions between the SET and the Ministry of Finance to enhance the capital market and support economic growth. Projects like JUMP+ will continue, while others like G-Token and BOND Connect await further clarification. The market hopes for a Finance Minister who understands capital market mechanisms to drive economic progress effectively.
Despite political changes, IPO activity in Thailand remains steady. Eighteen companies have filed with the SEC, with 10 approved, including potential large-cap entrants like Mr. D.I.Y. Holding (Thailand) Group and Thai Namthip Corporation. In the first eight months of 2025, companies raised $36 million, marking a low in recent years. However, Thailand still outpaces the Philippines and Vietnam in capital raising.
Mr. Soraphol Tulayasathien, Deputy Managing Director at SET, shared insights on global market influences, including signals from the US Federal Reserve regarding potential interest rate cuts. Despite these factors, the SET Index slightly decreased by 0.5% in August 2025.
Domestically, the National Economic and Social Development Council revised its forecast for Thai economic growth to 2%, citing accelerated exports. The overall net profit of listed companies in Q2 2025 grew, leading to higher share prices. The success of Thailand Focus 2025 and the recovery in IPO returns further highlight the market’s appeal.
By the end of August, the SET Index closed at 1,236.61 points, reflecting a slight decline. From the beginning of 2025 to August, the index decreased by 11.7%. Several sectors, including Technology and Financials, outperformed the broader market.
Trading activity saw a combined average daily value increase year-on-year, with foreign investors accounting for the largest share. However, they returned to net selling in August. The Market for Alternative Investment (MAI) welcomed a new listing, Mukdahan International Hospital, with a forward P/E ratio above the Asian average.
The TFEX futures market experienced a rise in average daily trading volume, driven by increases in Single Stock Futures and SET50 Index Options, though overall trading volume decreased compared to the previous year.