The SET Index Journey Thailand's Stock Market Development Since 1975

The SET Index Journey Thailand's Stock Market Development Since 1975

Blog Article

Foundation and Early Growth

The Stock Exchange of Thailand (SET) established in 1975, marked Thailand's entry into modern capital markets. Beginning with just a handful of listed companies and limited trading volume, the exchange initially struggled to attract both domestic and foreign investors. The early years focused on building market infrastructure, establishing trading regulations, and educating potential investors about equity markets. This period saw the gradual introduction of professional brokers and the development of basic market monitoring systems.

Asian Financial Crisis and Recovery

The 1997 Asian Financial Crisis severely tested the SET, with the index losing over 75% of its value. This crisis led to significant reforms in market regulation, corporate governance, and risk management practices. The post-crisis period saw the introduction of new financial instruments, improved transparency requirements, and stronger investor protection measures. These reforms helped restore confidence in the market and laid the foundation for future growth.

Modern Market Development

The SET has evolved into a sophisticated market with electronic trading systems, real-time settlement, and a diverse range of investment products including derivatives and ETFs. Market capitalization has grown significantly, with increased participation from institutional and foreign investors. Recent developments focus on digital transformation, sustainable investment practices, and regional market integration. The exchange continues to adapt to global trends while maintaining its role as a key driver of Thailand's economic growth.Shutdown123