Global Stock Market Pressures Impact Thai Equities Amid Geopolitical Risks and Sector-Specific Challenges

Key summary

Thai equities face volatility driven by global semiconductor sell-offs due to rising Data Center investment costs and competition, geopolitical tensions in the Middle East pushing up oil prices and bond yields, and foreign capital outflows. Specific Thai stocks show weakness: Delta (semiconductors) struggles with valuation pressure relative to foreign peers; IVL (chemicals/plastics) faces slowing Western consumption, asset devaluation from unprofitable plant reserves, and debt; CENTEL (hospitality) sees profit pressure despite tourist recovery due to weak domestic purchasing power and intense competition; BTS (holding company) records losses from underperforming subsidiaries; OR (oil) is constrained by government marketing margin controls on fuel and slowing non-oil business demand; M (hotpot/sukiyaki) faces fierce competition from budget buffet chains like Sukiji Jinda and Sukiji Ti Noi, which capture price-sensitive youth and family segments, limiting growth despite new brand launches.