# Thai Stock Market Outlook on 20 June 2025

- Link: https://www.thailand-business-news.com/markets/227451-thai-stock-market-outlook-on-20-june-2025
- Published: 2025-06-21T21:33:22+07:00
- Author: Abhishek Prakash

Asian equities and the dollar rallied as Trump delayed a decision on Iran strikes.
Thai shares, however, were down on the week due to political uncertainty. The SET
index closed at 1,067.63, down 4.9% from the previous week. Foreign and institutional
investors were net sellers, while retail investors and brokerage firms were net 
buyers.

Analysts predict the Stock Exchange of Thailand may fall below the 1,000-point threshold,
reaching a new low. This potential plunge is attributed to a recent political upheaval
that could result in the collapse of the Paetongtarn Shinawatra government and a
House dissolution. The Bhumjaithai Party’s withdrawal from the Pheu Thai-led coalition,
triggered by a dispute over ministerial posts, a leaked clip featuring Prime Minister
Paetongtarn Shinawatra and Hun Sen, and a conflict over the Interior Minister position,
is central to this political instability.

ADVERTISEMENT

Thailand has granted its inaugural virtual bank licenses to three consortiums: one
spearheaded by Charoen Pokphand Group, another by Gulf Development, and a third 
by SCB X. These new virtual banks are mandated to commence operations within one
year of the Finance Ministry’s approval, which was granted on Thursday.

In other economic news, the national wage committee has raised the daily minimum
wage for unskilled workers in Bangkok to 400 baht, an increase from 372 baht. This
new wage will take effect on July 1.

Furthermore, the Economic Stimulus Board has sanctioned a 110-billion-baht stimulus
package. Finance Minister Pichai Chunhavajira anticipates this initiative will bolster
GDP by 0.4% to 0.5%.

Regarding international trade, Thailand’s exports saw their largest surge since 
early 2022, reaching a record $31 billion in May, an 18.4% increase. The Ministry
of Commerce attributes this rise to companies rushing to stockpile goods due to 
a temporary hold on Trump tariffs. Separately, Thai negotiators engaged in a video
conference with their counterpa

The US Federal Reserve maintained interest rates at 4.25%-4.50% and projected two
rate cuts in 2025. The Bank of Japan kept rates at 0.5% but will taper bond purchases.
The Bank of England held rates at 4.25%, while Switzerland’s central bank lowered
rates to zero.

China’s retail sales growth accelerated in May, but industrial production slowed.
New home prices in China and UK home prices fell. Indonesia and the Philippines 
maintained interest rates, though the latter cut rates by a quarter point.

### Related**Posts**

###  󠀁[Asian stocks retreat as oil rises above $100 and investors reassess global rate risks](https://www.thailand-business-news.com/markets/333019-asian-stocks-retreat-as-oil-rises-above-100-and-investors-reassess-global-rate-risks)󠁿

###  󠀁[Asian markets hold up despite bond rout as US yields enter a structurally higher regime](https://www.thailand-business-news.com/markets/332037-asian-markets-hold-up-despite-bond-rout-as-us-yields-enter-a-structurally-higher-regime)󠁿

###  󠀁[Local Influences and Return Chasing: Entering a New Era in Emerging Equity Markets](https://www.thailand-business-news.com/markets/329573-local-influences-and-return-chasing-entering-a-new-era-in-emerging-equity-markets)󠁿

###  󠀁[Thailand faces a fresh LNG squeeze as Hormuz crisis pushes prices toward US$28/MMBtu](https://www.thailand-business-news.com/markets/commodities/330458-thailand-faces-a-fresh-lng-squeeze-as-hormuz-crisis-pushes-prices-toward-us28-mmbtu)󠁿

The SET announced changes to the SET50 and SET100 indices. King Power is seeking
to terminate concessions at major Thai airports. Banpu Power will divest shares 
in 10 solar power plants in Japan.

Upcoming economic data releases include US manufacturing PMI, consumer confidence,
new home sales, durable goods orders, GDP, and jobless claims. The UK will release
GDP data.

Krungsri Capital Securities recommends a mixed strategy, focusing on energy, export-
related stocks, and domestic stocks with strong fundamentals. InnovestX Securities
expects the Bank of Thailand to maintain its policy rate. Technical views suggest
support at 1,030 points and resistance at 1,100 points for the SET.

The Thai stock market rose modestly on Friday, buoyed by optimism over the country’s
recovering economy and stronger regional trade ties. The benchmark SET Index gained
0.8% in morning trading, reaching its highest level in three months as investor 
confidence grew ahead of anticipated government stimulus measures. Analysts attribute
the uplift to improving export data and stabilizing tourism revenues, key drivers
of Thailand’s economic growth.

For now, the SET Index’s rebound signals cautious optimism, but investors will be
closely monitoring global trends and domestic policy moves for clearer direction.

_Sources: Bank of Thailand, Kasikorn Research Center, Reuters._