From the beginning of 2025 to December 18, foreign investors made net purchases of Thai stocks totaling approximately THB 5.09 trillion and net sales of around THB 5.20 trillion, resulting in a net selling position of about THB 108 billion. Although these figures still reflect continued outflows, the pace has slowed compared to previous periods after the Thai market experienced continual foreign sell-offs for over two years in 2023-2024, with aggregate values in the hundreds of billions of baht.
In terms of regulatory measures, the Stock Exchange of Thailand (SET) employs various tools to control volatility and maintain trading order. These include the Circuit Breaker system, which temporarily halts trading during extreme fluctuations, Dynamic Price Band measures that limit stock price swings within ±10%, temporary trading suspensions for specific securities upon material information or irregularities, and abnormal trading controls such as Cash Balance and Net Settlement mechanisms.
According to a source from the SET, these measures are not designed specifically to attract foreign capital but help reduce volatility, maintain order, and mitigate risk from panic selling—which may have an indirect impact on investor confidence. Meanwhile, fund flow direction is still subject to macroeconomic factors, interest rates, and overall sentiment.
Mr. Asadej Kongsiri, Director and Manager of the SET, stated that in early 2026, the SET plans to review trading regulatory measures implemented in 2025, to consider maintaining or relaxing some of them. The goal is to “rebalance” between stringent oversight and increased market flexibility, to facilitate the return of foreign investors while maintaining market stability.
Discussions with MSCI and foreign investors revealed that Thailand’s regulations are stricter than those in many emerging markets, especially the restrictions on short selling and the Uptick Rule, which may impact liquidity. Measures currently under review include short selling limited to SET100 stocks, trading restrictions for the HFT group, Dynamic Price Band, and the Uptick Rule.
Mr. Asadej affirmed that claims labeling the Thai capital market as a money-laundering hub are exaggerated, as both the SET and the Securities and Exchange Commission (SEC) have robust monitoring and transaction screening systems. He also noted that over 90% of listed companies still maintain good corporate governance and emphasized the need to enhance communications to restore investor confidence.
Mr. Asadej also expressed confidence that the new government will continue the Thailand Individual Savings Account (TISA) or Thai ESG program, with plans to adjust tax incentives to attract retail investors. The Jump+ project has already exceeded expectations, with participation from over 100 firms.
Regarding Delta Electronics (Thailand) Public Company Limited (SET: DELTA) being removed from the SETESG Index, Mr. Napon Jaisan, analyst at Bualuang Securities, stated that it is expected to lead to over THB 3 billion in capital outflows. Furthermore, the adjustment to the capped weight criteria for individual stocks in the index has also contributed to the decline in DELTA’s share price.
However, KGI Securities (Thailand) expects DELTA’s profit for 4Q25 to increase both year-on-year and quarter-on-quarter, driven by higher sales and gross margin, with strong order books linked to data centers. In addition, DELTA’s normalized profit growth is forecasted to remain robust in 2026, with double-digit expansion outpacing other companies in its group. Although sales momentum may slow in 2026, DELTA’s favorable product mix should help support higher gross margins.
