Thai Stock Market Potentially Faces Stagnation This Friday
Thai Stock Market: Tech Sector Shines Amid Volatility
The Thai stock market has shown a cautiously positive outlook for the technology sector, with the sector leading performance among various sectors despite broader market volatility and economic challenges.
Energy Absolute, Gulf, and Krung Thai Bank accelerated by 2.74%, 2.13%, and 2.17% respectively, indicating a strong showing for tech companies. This optimism is supported by recent trends including the easing of U.S. tariff tensions and some domestic stabilizing factors, although caution is advised due to conflicting external influences.
The tech sector's strength is evident in the capital market report, which shows the sector leading performance over both short- and medium-term timeframes. However, the Thai stock market overall has been volatile in 2025, affected by global trade policy uncertainties, domestic political instability, and a weakening global economic outlook.
A critical positive development was the U.S. reduction of import tariffs on Thai goods from 36% to 19% on August 1, 2025. This reduction has eased uncertainty for Thai exporters, benefiting export-oriented sectors including technology hardware manufacturers or exporters.
Despite this, Thai market analysts highlight ongoing caution due to external factors such as the U.S. Producer Price Index (PPI) results influencing Federal Reserve rate cut expectations, as well as domestic economic growth concerns. This environment creates pressure on market valuations and thus moderates the overall optimistic outlook.
Domestically, Thai listed firms have conducted significant share buybacks (52 billion baht in H1 2025) amid falling stock prices, signaling corporate confidence in their intrinsic value and a strategy to stabilize market and sector valuations, including likely tech companies.
The Monetary Policy Committee's interest rate cuts and signals of further easing in 2025 support sectors sensitive to financing costs and investment appetite, which may positively impact tech firms needing capital for growth and innovation.
Investors are recommended to monitor quarterly earnings results, U.S. trade policies, and macroeconomic data such as Thailand's GDP and interest rate changes for clearer guidance moving forward. The global forecast for Asian markets remains uncertain due to conflicting reports on U.S. tariffs.
In other news, the Dow Jones Industrial Average fell 0.51%, the NASDAQ Composite gained 0.35%, and the S&P 500 dropped 0.08% on Wall Street. The Labor Department reported that first-time claims for U.S. unemployment benefits rose more than expected last week. Crude oil prices fell on Thursday due to inconsistency in the U.S. stance on Russia and its invasion of Ukraine.
In the Thai stock market, the SET index rose 0.21%, finishing at 1,267.12 on Thursday. Bangkok Bank collected 0.33%, while Bangkok Dusit Medical lost 0.89%. The Stock Exchange of Thailand may experience little movement on Friday.
- Despite the overall volatility in the Thai stock market, the technology sector has continuously shown strength, with tech companies like Energy Absolute, Gulf, and Krung Thai Bank experiencing growth, suggesting that investors might find potential opportunities in financing and investing in this stock-market sector.
- The monetary policy committee's interest rate cuts and signals of further easing in 2025 could positively impact tech firms needing capital for growth and innovation, signaling a positive outlook for investors seeking to capitalize on financial opportunities in the technology sector of the Thai stock market.
