Geopolitical tensions, especially the prolonged war in the Middle East, have caused sharp declines in stock markets worldwide, including Thailand's.
However, the Stock Exchange of Thailand (SET) confirms that its existing market infrastructure and stability measures remain effective and meet international standards, adequately supporting the current volatility.
Key mechanisms like the Circuit Breaker and the Ceiling & Floor price bands continue to slow market panic and provide investors time to carefully assess the situation.
Additionally, SET points out that there are currently various investment tools enabling profit opportunities in bear markets, such as Futures, Inverse ETFs, and Derivative Warrants (DW), allowing investors to strategize and manage portfolios in all market conditions.
Dr. Saraphol Tulayasathien, Deputy Managing Director and Head of Corporate Strategy and Finance at the Stock Exchange of Thailand (SET). He revealed that the stock market direction became volatile and shifted in March due to the Middle East war involving the United States, Israel, and Iran.
The main impact on the Thai stock market is oil price volatility, as the market has a relatively high proportion of stocks in the oil sector compared to others.
Moreover, the Thai stock market had risen significantly recently, ranking third highest in Asia after South Korea and Taiwan, prompting profit-taking pressures that caused some index declines.
Nevertheless, despite foreign volatility, strong domestic factors—such as a stable government, professional economic management, and timely budget approval for major projects—serve as a shield, enhancing the Thai stock market's resilience to external shocks.
Assadech Kongsiri, Director and Managing Director of the Stock Exchange of Thailand (SET). He stated that to handle stock market volatility from external factors and unexpected crises like the Middle East war, SET prioritizes maintaining a seamless infrastructure.
This has proven effective, as despite wide fluctuations in trading volumes, the market's trading mechanisms have continued operating normally and stably.
The current volatility control mechanisms are appropriate and sufficient, especially the Circuit Breaker, which activated at the first level (8% index drop) on 4 Mar 2026, demonstrating efficiency and international-standard compliance.
This mechanism gave investors time to pause, regain composure, and analyze information, allowing the market to recover and close down about 4% that day. Additionally, the Ceiling & Floor price bands of ±30% helped maintain liquidity effectively.
SET continues to closely monitor impacts on listed companies alongside the US dollar exchange rate, confident that Thai listed companies uphold good disclosure standards and are ready to provide necessary information to aid investors' decisions.
Assadech emphasized that the Thai stock market has a strong buffer and relatively low downside risk compared to regional markets, supported by stable macroeconomic fundamentals, high dividend yields, and consistent share buyback programs by listed companies that boost confidence.
Furthermore, the Thai market's diverse industry sectors and investor base reduce dependence on any single group, helping absorb shocks effectively and maintaining its appeal to foreign capital flows.
In bear markets, investors need not remain in cash waiting for recovery but can use financial instruments to profit from declining indices or stock prices. Popular and accessible tools on the SET include:
Dr. Saraphol stated that SET currently offers a variety of financial tools to help investors cope during bear markets. Having such comprehensive instruments greatly benefits investors in strategizing across all market conditions.
Whether investors view the market as bullish, bearish, or sideways, they can select appropriate tools to generate profits.
Moreover, SET continues to promote and seek new investment instruments to facilitate and expand choices for investors in the future.
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