Thailand’s SET Index closed at 1,624.47 points, decreased 19.92 points or 1.21%, with a trading value of THB 88.48 billion. The analyst stated that the Thai market declined on DELTA’s selloff, as the company’s 2Q26 earnings came out lower than anticipated. Furthermore, there are risk-reduction selling in the afternoon trading ahead of the holiday.
The analyst recommends investors closely monitor the situation in the Middle East.
For Thursday, the analyst expects the Thai market to bounce back.
The Thai Cabinet has approved the extension of the VAT reduction period for another year. The core objective of this measure is to prolong the current VAT rate of 7% to September 30, 2027.
Maintaining the VAT rate at 7% will lessen the burden of living costs, boost consumer spending, and enhance business confidence in the Thai economy.
Following the U.S. implementation of a 12.5% import levy on Thai products under Section 301, Thai exporters now face a 2.5% price gap compared to rivals in Indonesia and Malaysia, who are taxed at a lower 10% rate. This disparity is expected to trigger aggressive price negotiations from American buyers, particularly impacting low-margin sectors like rice, shrimp, and tuna. To counter these pressures, domestic producers are being encouraged to tighten operational costs and improve manufacturing efficiency to protect their market share.
