# Geopolitical tensions trigger market sell-off, dragging SET below 1,400

- Link: https://www.thailand-business-news.com/set/296210-geopolitical-tensions-trigger-market-sell-off-dragging-set-below-1400
- Published: 2026-03-23T18:28:07+07:00
- Author: Jessica Lee

The Stock Exchange of Thailand (SET) index fell below the critical 1,400-point threshold
on March 23, 2026, closing at 1,398.82 due to heightened geopolitical tensions in
the Middle East and a global “risk-off” sentiment.

While the 2.38% decline reflects significant investor anxiety and a capital flight
toward safe-haven assets like gold and bonds, market analysts maintain that the 
sell-off is primarily driven by external macro pressures rather than a deterioration
in domestic company fundamentals. The conclusion among experts is that while high
volatility is likely to persist in the near term, the current correction represents
a short-term shock that may eventually offer selective investment opportunities 
if geopolitical conditions stabilize.

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**Key Points**

 * The SET index dropped 34.17 points (2.38%) to finish at 1,398.82, with total 
   trading value reaching 57.29 billion baht.
 * This marks the first time the benchmark index has slipped below the 1,400 level
   since early March 2026, erasing a brief mid-month recovery.
 * The sell-off was characterized as “panic selling,” with energy stocks leading
   the decline amidst heightened global uncertainty.
 * Market experts emphasize that the downturn is fueled by external factors—such
   as Middle East conflicts, global inflation, and economic slowdown concerns—rather
   than internal earnings issues within Thai listed companies.
 * Investors are increasingly moving capital away from equities and into safe-haven
   assets, including gold and bonds, to mitigate risk.
 * Strategists warn that the Thai market remains highly sensitive to global sentiment
   and currency movements, suggesting that volatility will remain high as long as
   geopolitical risks intensify.

On March 23, 2026, the SET index experienced a significant decline of 2.38%, led
primarily by the energy sector. Analysts attributed the sharp sell-off to “panic
selling” as investors reacted to escalating geopolitical tensions in the Middle 
East.

The Stock Exchange of Thailand closed at 1,398.82 points, falling below the 1,400-
point threshold for the first time since early March. Among the major individual
decliners were Delta Electronics, which saw its shares drop by 3.35%, and Advanced
Info Service, which fell by 2.89%. Other notable losers during the session included
Gulf Energy Development, Airports of Thailand, and CP All.

Market strategists said that the downturn was driven by external global risk-off
sentiment rather than domestic fundamentals. Investors shifted capital toward safe-
haven assets like gold and bonds as the U.S.-Iran war threatened global energy infrastructure
and supply chains. Despite the sharp correction, some analysts believe the breach
of 1,400 may create selective opportunities in sectors with strong pricing power
and solid fundamentals once the market stabilizes.

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### How are regional Asian markets performing compared to the SET?

On March 23, 2026, regional Asian markets faced a broad-based decline alongside 
the Stock Exchange of Thailand (SET), with several major bourses recording even 
sharper percentage drops than Thailand’s 2.38% loss. While the SET index fell below
the 1,400-point threshold, South Korea’s market shed 5.2% and Japan’s Nikkei fell
3.8% on the same day.

The MSCI Asia-Pacific index, excluding Japan, lost 2.5% as investors reacted to 
escalating threats between the United States and Iran. Malaysia has emerged as a
relative outlier in the region, with its benchmark index losing only 1.2% this month
due to its status as a net energy exporter. Analysts say the Middle East war is 
driving a “risk-off” sentiment, causing global funds to exit emerging markets in
favor of safe-haven assets.