Mr. Suwat Wattanapornprom, Director of the Research Division, Investment Strategy, at Krungsri Securities (KSS), stated in “Kaohoon” program on August 5, 2026, that the overall outlook for the Thai benchmark in the early trading was relatively positive. The market was mainly supported by eased tensions between the U.S. and Iran as negotiations continued to progress.
Scott Bessent, the U.S. Secretary of Treasury, stated that the Strait of Hormuz could reopen within 2-3 days, leading to a decline in crude oil prices. Brent oil prices dropped from around $85 per barrel to around $78-80 per barrel, which is a positive factor for overall investment sentiment.
At the same time, the yield on the U.S. 10 Year Treasury bond decreased to around 4.61% from previous levels near 4.7%, reflecting a more accommodative financial environment and providing positive momentum for risk assets worldwide.
Regarding energy stocks, Mr. Suwat commented that the drop in oil prices may put short-term pressure on upstream energy stocks, especially PTTEP, which may face earnings estimate revisions in line with oil price movements. However, the current decline in oil prices is gradual, as such its impact is expected to be less severe than previous rounds.
For midstream energy stocks, such as petrochemicals and refineries, supportive factors remain as product spread levels are still favorable.
In terms of investment strategy, Mr. Suwat recommends overweighting stocks that benefit from the de-escalation, especially the power plants, airlines, hire purchase, and telecommunications sector. The domestic themed-stocks also remain suitable for holding as a core portfolio, including selected industrial estate stocks and some banks.
Outstanding picks of the day include: GULF with a target price of THB 74, GPSC with a target price of THB 59, and MTC with a target price of THB 40.
Mr. Suwat further added that although the investor confidence index for the Thai stock market has risen to an overheated level, the market is not yet considered overly risky. Around 36 listed companies have reported results, with overall earnings exceeding expectations by around 6.5-7%, and profit growth of about 10% year-on-year. The annual earnings per share of the market remain above THB 100, suggesting that Thai market valuations are not expensive relative to bond yields.
The analyst added that THAI was also seen as attractive for risk-tolerant and speculative investors, following the decline in oil prices, which is positive towards operating costs since fuel accounts for 30-40% of the company’s total costs.
Although the second and third quarters are typically considered a low season for airlines, the market now expects THAI to maintain profits of around THB 400-500 million, reflecting stronger cost structures and operational efficiency following restructuring. With pressure from non-fundamental factors also easing, short-term speculative investment is seen as viable.
