Tosapol Kerdphol, Managing Director of J.P. Morgan Securities (Thailand), revealed that the Stock Exchange of Thailand (SET) is currently moving in a distinctly opposite direction from global markets, prompting Thai investors to adjust their investment strategies.
Since the beginning of 2025, the SET50 index has decreased by 9%, while the Hang Seng Index in Hong Kong has risen by about 26%, the S&P 500 by 12%, and Japan’s Nikkei 225 by 17% (data as of 14 October 2025).
This divergence reflects an overall economic landscape under pressure from trade tensions, changing global political dynamics, and concerns about fiscal stability. Although market volatility in the U.S. and Hong Kong has eased since April, Thailand still faces ongoing challenges from political uncertainty and trade negotiations.
As a result, over THB 100 billion in foreign capital outflows have left the Thai market (as of 14 October 2025), illustrating investor concerns over both domestic and external risks. Many retail investors are now seeking tools and strategies that offer risk protection while preserving access to global growth opportunities.
Derivative Warrants (DW) have thus gained popularity as a way to manage downside risk and allow investors to track key indices and major stocks in important markets such as the U.S., Hong Kong, and Japan. DW enables investors to manage volatility without the need for large capital outlays.
J.P. Morgan has observed rising interest among Thai retail investors in investments linked to growth, with many turning to DW to access overseas equities and indices. DW serve as instruments that provide market access with a low initial investment outlay, enabling risk management in both bullish and bearish markets.
Most recently, J.P. Morgan has launched long-term DW with maturities over one year, increasing their flexibility for investors. Thai investors can use DW for both short-term gains (daily or weekly) and medium-term positions (10-20 days), while the longer maturity helps reduce holding costs. This new format of DW allows investors to add them to their portfolios to minimize initial capital requirements and efficiently hedge downside risks.
