(Bloomberg) -- Thailand’s benchmark stock index headed for a technical bear market amid investor concerns about the growth outlook for Southeast Asia’s second-largest economy.
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The Stock Exchange of Thailand Index fell as much as 2.4% on Friday, taking its decline from an October high to more than 20%. Shares of Delta Electronics Thailand Pcl and Airports of Thailand Pcl were among the biggest contributors to the slide.
Foreign investors have continued to sell stocks in Asia’s worst performing equity market in 2025 after withdrawing almost $10 billion in the last two years. Concerns are mounting that Thailand’s economy, which missed growth targets last year, will be further impacted by US President Donald Trump’s pledges to impose tariffs on various nations.
“The continued weakness in the SET is driven by the weak Thai economy, as government policies over the past decade have not led to any structural improvements,” said Pon Van Compernolle, a managing partner at RVC Emerging Asia Fund. It “is evidence of a lack of faith in the capital markets amid a continued selling spree from both foreign and local institutions.”
Global funds have sold $381 million of local shares on a net basis so far this year, according to data complied by Bloomberg as of Thursday.
The country is vulnerable to reciprocal tariffs from the US as it has higher import levies on US goods than those Washington applies to its shipments there. Government agencies are examining measures to protect Thailand’s trade interests, while Prime Minister Paetongtarn Shinawatra has appealed for “closer” cooperation between the Bank of Thailand and the Finance Ministry to shore up growth.
The drop in Thai stocks was part of a broader selloff in the region as Trump’s latest threats on tariffs weighed on sentiment. Indonesia’s benchmark stock index also fell, poised to end the day in a technical bear market. That has spurred a more than 10% decline in the MSCI Asean index from a peak in September.
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