Thai Stock Market Eyes 1,700 Points as Foreign Investors Return
The Thai stock market could reach 1,700 points this year as foreign investors return with over 75 billion baht in cumulative net purchases, though geopolitical tensions and oil prices remain key risks to growth.
The Stock Exchange of Thailand (SET) is confident the Thai stock market can rise to 1,700 points if foreign conflicts do not intensify and new investment capital flows into the economy as expected. Foreign investors continue to show strong interest, evidenced by cumulative net purchases of over 75,000 million baht and July's average daily trading value hitting 87,397 million baht, the highest in over four years. The exchange plans to host Thailand Focus 2026, featuring 87 listed companies worth over 15 trillion baht in total securities value, with participating ASEAN firms to boost global investor confidence.
On August 6, 2025, Asadej Kongsiri, board member and managing director of the Stock Exchange of Thailand, stated that the Thai stock market shows positive momentum for the remainder of 2025 and has potential to reach 1,700 points if international conflicts do not severely impact the global economy, particularly regarding oil prices potentially rising above $100 per barrel, and provided global investment conditions remain stable.
Kongsiri noted that Thailand's economic fundamentals are steadily strengthening, including foreign direct investment (FDI) gradually shifting from investment promotion applications to actual investment through government Fast Track and Fast Pass measures. State policies promoting investment and infrastructure development are expected to encourage increased private sector investment, as Thailand's investment-to-GDP ratio has declined from over 40% historically to merely 15-20% over the past decade.
"If these fundamentals remain unchanged, the Thai stock market remains attractive, with foreign direct investment serving as important additional support," Kongsiri said.
However, he acknowledged global economic volatility remains a risk factor, particularly if Middle Eastern conflicts intensify and push oil prices higher, or if tech stock and AI correction fears trigger global investor panic, reducing risky asset investments that could affect the Thai market. Thailand's diverse industrial structure spanning finance, energy, and domestic-focused businesses provides some insulation from direct impacts.
Regarding foreign capital flows, Kongsiri noted that throughout the year foreign investment has moved with global conditions. Following Thailand's elections, inflows reached approximately 60,000 million baht before declining about 40,000 million baht during Middle Eastern tensions, subsequently rebounding. Latest cumulative net purchases stand at approximately 75,864 million baht, reflecting increased foreign investor weighting in Thai equities.
The exchange has also received positive signals from multiple foreign brokerage firms and institutional investors upgrading to Overweight recommendations on Thai stocks and publishing more Thailand-focused analysis, reflecting confidence in the economic outlook and government policies.
Kongsiri stated that foreign investors will focus on sectors linked to FDI, including data centers, electrical power, clean energy, utilities, and water, alongside sectors benefiting from domestic consumption and government target industry promotion such as healthcare and the seven new economic clusters.
For July 2025, the SET Index closed at 1,623.64 points, up 2% from the previous month and up 28.9% from year-end.