PATTAYA, Thailand – Thailand’s stock market rally is expected to continue, with analysts also anticipating a gradual rotation into laggard stocks that have fallen below fundamental value, driven by a mean-reversion effect across key sectors including retail, utilities, hospitals focused on foreign patients, and tourism-related stocks. Market strategist from Bualuang Securities, Piriyapon Kongwanich said the Thai equity market continues to show strength despite slower economic growth, supported by structural drivers, global investment cycles, and sector-specific recovery themes, with the SET Index still seen having room to move toward the 1,620 level. He added that investor interest is expected to broaden into underperforming sectors, particularly retail, small power producers (SPP), healthcare operators serving international patients, and tourism stocks, as valuations adjust toward fundamentals.
Four key investment opportunities in June
The strategist outlined four main investment themes expected to drive market momentum in June:
- New Thailand investment cycle led by BOI FastPass
A new wave of foreign direct investment is expected under Thailand’s BOI FastPass scheme, particularly in digital infrastructure, data centers, and electronics. Beneficiaries include Global Power Synergy Public Company Limited (GPSC) and WHA Corporation Public Company Limited.
- Global electronics upcycle driven by AI and data centers
Electronics exports across Asia—including Thailand, South Korea, Japan, and Taiwan—are showing continued expansion supported by artificial intelligence and global data center demand. Key beneficiary stocks include KCE Electronics Public Company Limited.
- Interest rate cycle nearing its end and strong wealth management growth
Although global rate cuts are approaching their end phase, wealth management businesses continue to expand as assets under management (AUM) grow steadily on both a monthly and yearly basis.
Recent fund growth includes KASSET (+1.7% MoM, +11.5% YoY), SCBAM (+1.0% MoM, +4.9% YoY), and KTAM (+0.8% MoM, +14.2% YoY). The strategist also highlighted dividend expectations from major banks, including Krungthai Bank Public Company Limited (KTB) (6.6%), Kasikornbank Public Company Limited (KBANK) (6.5%), and Siam Commercial Bank Public Company Limited (SCB) (7.5%).
- Cost control and retail recovery under government stimulus
Improved cost management is expected to support earnings in the retail sector, aided by the government’s “Thai Helps Thai Plus 60/40” program running from June to September, which helps offset rising living costs. Laggard stocks expected to benefit from earnings recovery include retail and consumption-related names such as Central Retail Corporation Public Company Limited (CRC) and Moshi Moshi Retail Corporation Public Company Limited (MOSHI).
Market outlook
Analysts expect continued strength in Thai equities as global AI-driven demand, investment inflows, and structural sector rotation support earnings growth, even as domestic GDP remains under pressure. The strategist added that Thailand’s economy is increasingly showing a K-shaped pattern, where investment- and export-linked sectors outperform, while consumption-linked areas remain more constrained. Despite short-term volatility risks from geopolitical tensions, market sentiment remains supported by global technology cycles, domestic investment momentum, and improving earnings visibility in key sectors.
