SET says circuit breaker cooled panic as oil shock hit Thai stocks
SET says its circuit breaker worked as intended after Thai stocks slid 8%, while officials watch oil risks and stand ready with more measures.
The Stock Exchange of Thailand said its circuit breaker mechanism worked as intended after the SET Index tumbled 8.01% on March 4, triggering a temporary trading halt amid a sharp global sell-off linked to the Middle East conflict and energy-price fears. Assadej Kongsiri, president of the bourse, said the pause helped slow panic and gave investors time to reassess information before trading resumed, with the index later closing down 5.58%.
Assadej said the move showed Thailand’s market safeguards were functioning effectively and in line with international practice, even during a shock driven by oil-price volatility and inflation concerns. Regional markets were also hit hard that day, with South Korea’s Kospi plunging enough to trigger its own circuit breaker as investors priced in the risk of a prolonged Middle East war and tighter energy supplies.
Circuit breaker helped steady the market
The bourse chief said one notable feature of the sell-off was that no big-cap stock hit either the ceiling or floor limit, suggesting liquidity and price formation remained orderly under current exchange rules. He added that the SET board was ready to meet at any time and could roll out extra measures if needed, while continuing to draw on overseas examples, including South Korea, as a reference point.
No big-cap shares hit ceiling or floor
Assadej also stressed the importance of timely disclosure by listed companies so both domestic and foreign investors could make informed decisions. He said the exchange remained confident in Thailand’s economic stability and in the long-term fundamentals of listed firms, while continuing to monitor trading behaviour closely to ensure fairness across the market.
Prolonged war remains the key risk
He said the main threat now is whether the conflict drags on long enough to keep oil prices elevated and squeeze corporate earnings, not only in energy stocks but also across industries facing higher production costs and currency volatility. Thailand’s energy exposure is mitigated by diversification, with officials saying the country sources a large share of its crude and gas from outside the Middle East, but authorities are still stepping up contingency planning as the crisis continues.
