Thailand stock exchange bans short selling amid Trump tariff fallout
Thailand was hit by a tariff of 36 per cent, among the highest rates in the region, and its trade surplus with the US totalled US$45 billion last year
The ban on short selling of all securities, except for market makers, and a narrower band for stock movements will be effective from Tuesday and no longer than April 11, the Stock Exchange of Thailand (SET) said in a statement on Monday after its board held a special meeting. Financial markets in Thailand were closed on Monday for a local holiday.
Short-selling is when an investor borrows a stock at a certain price to sell, expecting they can buy it back in the future at a much lower price.
The SET said it believed the temporary measures would “support the stability of the market and investor confidence”.
The trading band for most stocks have also been halved when the market reopens on Tuesday, with SET equities going from 30 per cent to 15 per cent and foreign lists from 60 per cent to 30 per cent.
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The curbs are meant to mitigate potential volatility and provide investors with an opportunity to assess their response to the US tariff barrage that triggered a global market downturn, the exchange said. Thailand was hit by a tariff of 36 per cent, among the highest rates in the region. The Southeast Asian country’s trade surplus with the US totalled US$45 billion last year.