Thailand's stock market extended losses Monday after trading resumed, with the SET Index falling 2.1% as regional anxiety over Middle East escalation pushed investors toward safe-haven assets. Energy and defense-related equities bore the brunt of the selloff.
- SET Index dropped 2.1% to 1,743.67 on Monday
- CL=F rose to $79.45, reflecting supply concerns
- CBOE Volatility Index (^VIX) climbed 13.6% to 21.8
- Thai Defense Holdings (THD) fell 6.4%
- PTT Public Company Ltd. (PTT) declined 3.9%
- Defense and energy sectors led regional selloff
Thai equities opened lower Monday, extending losses triggered by renewed tensions in the Middle East, as trading resumed following a weekend of heightened geopolitical activity. The SET Index dropped 2.1% to close at 1,743.67, marking its worst daily performance since January 2024. The decline was broad-based, with defense and energy sector stocks leading losses, reflecting investor concerns over disrupted supply chains and heightened global volatility. The sell-off in Thailand mirrors broader regional and global trends, driven by rising uncertainty in the Middle East. Oil prices rebounded slightly on Monday, with West Texas Intermediate (CL=F) trading at $79.45 per barrel, up $1.20 from Friday’s close, but market participants remain wary of potential supply disruptions. The CBOE Volatility Index (^VIX) rose 13.6% to 21.8, signaling increased expectations of market turbulence. Specifically, defense-linked stocks in Thailand saw sharp declines: Siam Commercial Bank’s defense subsidiary, Thai Defense Holdings (THD), fell 6.4%, while aerospace and security firm Precision Engineering (PRC) dropped 5.8%. Energy firms also felt pressure, with PTT Public Company Ltd. (PTT) shedding 3.9% amid growing speculation over oil market stability. The losses in Thailand underscore how geopolitical flashpoints can quickly reshape regional equity dynamics. With Asian markets reacting to Middle East developments, investors are reassessing risk exposure, particularly in sectors sensitive to global conflict and commodity volatility. The situation may prompt further repricing in energy and defense equities across Southeast Asia in the coming 24 to 48 hours.