Thailand’s stock market is in freefall, with the benchmark SET Index plunging 16% this year, making it the worst-performing major index globally. The government’s $4.5 billion rescue plan, launched seven months ago through the Vayupak Fund, was intended to stabilize the market by injecting capital into local firms. However, the initiative has failed to restore investor confidence, leaving analysts perplexed and policymakers scrambling for solutions. Foreign investors have pulled out $4.2 billion over the past year, the largest outflow in Southeast Asia, further exacerbating the crisis.
At the heart of the issue is a lack of faith in Thailand’s economic fundamentals. High household debt, political instability, and weak corporate earnings have created a perfect storm of uncertainty. The economy, heavily reliant on tourism, has struggled to diversify, and growth remains sluggish compared to regional peers. Despite the government’s efforts, including tax incentives and stimulus packages, the market’s downward trajectory shows no signs of reversing.
Sources:
https://finance.yahoo.com/news/world-biggest-stock-rout-deepens-012614185.html
