SET tightens trading band to curb volatility amid Middle East conflict

SET narrows trading band to ±5% amid Middle East tensions to help stabilise Thai stock market and boost investor confidence.

In response to heightened geopolitical tensions in the Middle East, which have sparked concerns over regional stability and global economic prospects, the Stock Exchange of Thailand (SET) has announced temporary trading measures to mitigate potential market volatility and boost investor confidence.

The SET Board, in a special meeting held on Sunday, June 22, 2025, approved a temporary revision of trading regulations effective from Monday, June 23, through Friday, June 27, 2025. The decision comes as global markets brace for potential shocks due to escalating uncertainty, which may impact investor sentiment and trading activity, particularly on June 23.

Key among the temporary measures is a narrowing of the dynamic price band for individual securities. The band, which limits price fluctuations within a trading session, will be reduced from ±10% to ±5% of the most recent traded price of each security. This measure is designed to help moderate excessive price swings during periods of heightened uncertainty.

However, the adjustment will not apply to securities with underlying assets or indices listed on foreign exchanges, such as Depositary Receipts (DRs), Derivative Warrants (DWs), and Exchange Traded Funds (ETFs).The SET will continuously monitor market conditions and may revert to the standard trading rules prior to June 27 if it deems the temporary measure no longer necessary. The exchange emphasised that this temporary adjustment is intended to help stabilise the market and provide investors with more time and clarity to assess the evolving situation before making investment decisions.

(2025/06/23-00:00)