(Bloomberg) -Thalands index of reference shares has fallen on the edge of the bear’s technical market in the midst of an concern of investors over the prospect of growth for the second largest economy of Southeast Asia.
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The Thai index stock market closed 1% lower on Friday after it briefly fell more than 20% with maximum in October during trading within the day. Delta Electronics shares Thailand PCL and Advanced Info Service PCl were the biggest contributions to Tobogan.
Foreign investors continued to sell shares on the capital market in the worst Asian performances of 2025 after they withdrew almost $ 10 billion in the last two years. Concerns are increasing that the Thai economy, which missed the growth goals last year, will further influence the promise of US President Donald Trump to impose tariffs with various countries.
“Permanent weakness in the set is triggered by a weak Thai economy, because government policies have not led to structural improvements over the past decade,” said Mon Van Compernolle, a RVC management partner in the emergence of the Asian Fund. This is “proof of a lack of faith in capital markets in the midst of constant sales and foreign and local institutions.”
Global funds have so far sold $ 381 million in local stocks on net base, according to data that Bloomberg has filled from Thursday.
The country is vulnerable to the reciprocal tariffs from the US because it has higher charges for imports to American goods than those Washington are applied to their shipments. Government agencies are examining the protection of Thailand’s trade interests, while Prime Minister Paetongtarn Shinawatra appealed to “closer” cooperation between the Bank of Thailand and the Ministry of Finance to increase growth.
The fall of Thai supplies was part of a wider sale in the region, as Trump’s last threats of tariffs weighs feelings. The Indonesia’s stock index also fell, ending the day on the bear market. This encouraged more than 10% of the fall of the MSI ASEAN index from the peak in September.
In Thailand, “Consumer debt is still stubbornly high by slowing the economy, it is hard to fall quickly enough,” said John Foo, founder of Valverde Investment Partners PTE. “The market is also affected by corporate management issues” that included some “favorite shares” that many foreign investors have.
