BANGKOK, Thailand – Krungthai Chief Investment Office (Krungthai CIO) sees easing uncertainty over US monetary policy following the latest Federal Reserve meeting and a less hawkish-than-expected dot plot, creating an opportunity for investors to gradually increase exposure to risk assets. In its investment outlook for September 21–25, Krungthai CIO said US equities traded mixed during the previous week, with the S&P 500 falling 0.1% and the Dow Jones declining 1.7%, while the Nasdaq gained 0.7%, supported by technology stocks as bond yields temporarily eased.
European stocks declined, while Japanese equities recovered. Krungthai CIO said the market continues to favor selective investment in companies with clearer earnings prospects rather than broad exposure across equity markets. In fixed income, the US 10-year Treasury yield rose 2.9 basis points to around 5%, reflecting inflation and fiscal risks. Thailand’s 10-year government bond yield fell 4.7 basis points to 2.30% on domestic factors.
Gold prices rose 0.7% to around US$4,379 an ounce. Brent crude fell 0.7% to US$103.87 a barrel, while West Texas Intermediate rose 0.2% and remained above US$100 a barrel, indicating continued energy risks as markets monitor China’s potential role in helping ease tensions around the Strait of Hormuz. Krungthai CIO maintains an overweight view on equities relative to Neutral over the medium term, focusing on assets with clear earnings prospects and strong cash flow.
For core portfolios, it recommends Quality Growth stocks as the main allocation, while High Beta stocks can be accumulated gradually in satellite portfolios. Technology and semiconductor companies are among the areas highlighted, supported by demand for AI applications and AI computing, along with North Asian technology stocks. Krungthai CIO also sees short-term opportunities in China’s A-share market, supported by policy measures, and in Vietnamese equities following FTSE Russell’s upgrade of Vietnam to Secondary Emerging Market status.
To diversify risk, the investment team recommends exposure to healthcare, energy and gold. If oil prices ease and bond yields stabilize, Krungthai CIO sees scope to gradually add growth stocks during periods of market weakness. Investors are also watching several key developments this week. US and Chinese leaders are scheduled to meet on September 24, with markets assessing the direction of a potential trade truce and discussions on rare earths and AI technology.
Flash PMI figures for the United States, Europe and other major economies are due on September 23, while Thailand’s export and import figures are scheduled for release on September 25.
This keeps the recommendations attributed to Krungthai CIO rather than presenting them as investment advice from Pattaya Mail.
