The Thai stock market faced another challenging session, closing on March 4, 2025, at 1,177.64 points, marking a decrease of 10.77 points, or approximately 0.91%. The day witnessed significant trading activity, with total transactions reaching 42,016 million baht. Despite hopes for recovery sparked by earlier buying activity from DELTA, the market succumbed to broader regional trends and mounting trade tensions.
Experts note the influence of the current global economic atmosphere on local markets. "The Thai stock market today adjusted downwards due to concerns about DELTA stocks and overall sentiment," said Naret Detchanetpaisarn, an executive at BLS. The trading session highlighted continued selling pressure primarily driven by regional market instability linked to rising U.S.-China trade tensions.
Significantly, the U.S. has implemented fresh tariffs on imports from China, Canada, and Mexico, causing anxiety among investors and leading to adverse reactions on the Thai stock exchange. With new duties imposed, investor sentiment has declined sharply, contributing to the overall negative trading environment.
On the same day, the Thai Securities and Exchange Commission (SEC) announced the imposition of civil penalties against 11 individuals linked to insider trading involving shares of LP&D Development Co., or LPN. The SEC's findings have fueled serious concerns about corporate governance within the affected company. These penalties amounted to 17,529,772 baht, underscoring the SEC's commitment to maintaining market integrity.
The SEC's investigation, initiated after receiving information from the Stock Exchange of Thailand back in September 2020, revealed severe breaches involving executives who possessed insider information before public disclosure of significant financial announcements. LPN had approved its highest-ever interim dividend of 1 baht per share during 2020, raising eyebrows after recording substantially lower payouts from 2015 to 2019—where dividends rarely exceeded 0.60 baht per share.
This investigation led to the discovery of multiple cases where LPN executives used privileged information to trade shares legally. The SEC outlined cases involving notable individuals connected to LPN, such as Thikampon, the vice-chairman, and Wutthiphon, the head of the audit committee, both accused of trading on non-public information using accounts controlled by relatives to mask their actions.
The SEC's measures aim to prevent similar violations and signal to market participants the serious consequences of such misconduct. The fine details of the penalties reveal varying amounts for each accused individual, all connected through insider trades during 2020. For example, Thikampon received the largest sanction totaling 4,361,872 baht, alongside 14 months of exclusion from holding director positions. Similarly, Wutthiphon faced fines totaling 2,664,864 baht, demonstrating the SEC's firm stance against illegal trading practices.
Understanding these developments is key to evaluating potential future trends within the Thai stock market. Analysts suggest the potential for continued volatility, with near-term market support levels projected around 1,170 points, with resistance observed near 1,186 points. Further fluctuations may arise as earnings reports for Q1 and Q2 begin to emerge, signaling investor focus on companies’ recovery trajectories.
Despite the negative sentiment, there remains cautious optimism among some investors for rebounds, albeit possibly temporary, as mixed factors could influence stock values this week. Nonetheless, the backdrop of enforcement actions, like those from the SEC, testifies to the regulatory body's dedication to keeping the markets honest and transparent.
Overall, the combined effects of trade dynamics and heightened regulatory scrutiny are expected to shape the Thai stock market's environment significantly as participants navigate these uncertain waters.