Thailand’s Stock Market Forecast for March 5, 2025

Thai Stock Market Forecast for March 5, 2025

As per Maybank Securities (Thailand), the Thai stock market is expected to witness significant volatility due to the imposition of U.S. tariffs on Mexico, Canada, and China. The retaliatory measures declared by China and Canada, as well as the impending response from Mexico, are likely to contribute to this heightened volatility. Despite this, the U.S. Department of Commerce’s proposed tax mitigation guideline for Canada and Mexico may lead to a temporary market rebound resulting from the anticipated easing of tariffs.

Investor attention is expected to shift towards crucial economic indicators and central bank policies in the weeks ahead. Global oil price fluctuations and geopolitical events in the region could act as additional factors influencing market sentiments. To effectively manage risks during this period of volatility, investors are advised to exercise caution and diversify their portfolios.

As China’s National People’s Congress convenes, projections indicate the unveiling of economic objectives and stimulus measures that could potentially bolster market confidence. It is worth noting that while domestic market conditions may seem subdued, the market’s Price-to-Earnings (P/E) ratio has fallen below the long-term average, presenting a buying opportunity for long-term investors in the event of further index retreats.

Despite the looming market uncertainties, Thailand’s economic outlook for 2025 remains positive, with GDP growth estimated to range between 2.4% and 3%. This steady growth forecast may offer some stability to the stock market over the long term, even as short-term fluctuations are anticipated.

In view of the prevailing market dynamics, investors may want to consider the following strategies and recommendations:

1. Foreign Investments: The UOB Kay Hian report underscores potential opportunities arising from foreign investments, which could have a positive impact on the Thai equity market.

2. Policy Support: Kiatnakin Phatra Securities highlights the role of policy support as a potential market booster to counterbalance external challenges.

3. Long-term Focus: The Stock Exchange of Thailand (SET) has outlined a strategic roadmap for 2025-2027, focusing on “Fair & Inclusive Growth,” aimed at enhancing Thailand’s capital market ecosystem. This long-term approach could offer stability and growth prospects to investors looking beyond short-term market fluctuations.

Given the intricate web of domestic and international factors at play, investors are urged to closely monitor market developments and consider diversifying their portfolios to mitigate risks associated with the anticipated volatility on March 5, 2025.