The Stock Exchange of Thailand (SET) is actively considering a revision of its stock trading hours, with a particular focus on potentially reverting the opening of the afternoon trading from the current 2:00 p.m. back to the original 2:30 p.m. This comes as securities companies have voiced concerns over increased operational costs arising from extended trading, with only marginal gains in trading volumes.
Although daily trading value has risen from THB 30 billion to around THB 47 billion, SET President Asadej Kongsiri noted that this uplift may not justify the higher costs.
Feedback from brokers suggests that extended hours do not add sufficient value under current liquidity conditions. SET is thus conducting a comprehensive review, weighing the diverse needs of stakeholders, particularly those involved with products tied to overseas markets, before making a final decision.
Meanwhile, the SET faces increasing competition as more Thai companies consider listing overseas. Notably, firms such as LINE MAN Wongnai are reportedly eyeing markets in Hong Kong, Singapore, or the United States. Reduced Thai stock valuations—reflected in P/E ratios falling from 15–16 times to nearly 14 times—and stringent domestic listing rules have contributed to this trend. Over the past three decades, few changes have occurred in the SET’s top listed companies, largely due to mergers, in contrast to the U.S. market’s dynamic evolution.
In response, the SET is working with the Securities and Exchange Commission (SEC) to simplify regulatory procedures, shorten listing timelines, and align disclosure standards with international best practices. Plans are also underway to benchmark Thai criteria against those in Hong Kong and Singapore to boost competitiveness.
SET’s forward-looking initiatives include the Thailand Individual Saving Account (TISA), which aims to create a permanent, long-term savings vehicle to support both individual financial planning and capital market stability. Legislative amendments to strengthen the SEC’s enforcement capabilities are also being pursued to enhance transparency and investor protection.
The exchange is also addressing concerns over frequent regulatory changes by reviewing and consolidating rules, while developing new stock and derivative products to improve liquidity. The BOI to IPO project is another important effort, targeting new and future-industry businesses and encouraging high-potential foreign firms to list in Thailand, thus increasing market diversity and attractiveness.
On the issue of declining MSCI index weightings for Thai stocks, foreign ownership restrictions—especially in the banking sector—have been identified as a challenge. The SET is considering regulatory changes to allow for greater direct foreign participation while maintaining domestic shareholder control, possibly through vehicles like dual class shares.
Despite recent short-term volatility in foreign capital flows, most current inflows are for long-term investment, a sign of confidence in Thailand’s growth prospects. However, continued inflows will depend on stable domestic politics and global economic conditions, with currency fluctuations remaining a key consideration for foreign investors.
