Mr. Koraphat Vorachet, Assistant Director and Division Head of Research at Krungsri Securities (KSS), said in the “Kaohoon” program on October 22, 2026, that the Thai stock market is expected to trade range-bound with volatility today, but may also potentially rebound from bargain-hunting in large-cap equities, particularly banking and technology stocks. This follows early signs of recovery in the previous session, alongside foreign capital inflows returning to the Thai equity market for a second consecutive day.
In the previous session on October 21, the SET Index opened up about 8 points in line with regional market recoveries before facing heavy selling pressure in tech-related equities, notably DELTA. DELTA’s share price broke below the key support level of THB 242 and slipped to retest its previous low of THB 232, triggering broad selling pressure across the market.
However, the index gradually staged a recovery supported by buying interest in other sectors, particularly commercial banking, which was bolstered by solid third-quarter 2026 earnings. KBANK attracted investor interest following strong financial results and a positive business outlook, alongside emerging signs of improving loan growth across the sector.
Mr. Koraphat noted that a key supporting factor for Thai equities is the resumption of net buying by foreign investors, who recorded net purchases of approximately THB 100 million two days before increasing to around THB 1.5 billion on October 21. Although the inflow volume remains modest compared to historical levels, it signals a positive shift in market sentiment.
On the global front, external pressures have begun to ease, particularly as U.S. Treasury yields stabilize rather than maintaining their prior upward momentum. Meanwhile, strong quarterly earnings from major U.S. tech firms—including SpaceX, Tesla, and Meta—have helped reinforce confidence in the growth trajectory of the technology and artificial intelligence sectors.
Furthermore, demand for AI infrastructure investment continues to expand, driven by capital expenditure in data centers and processing capacity as global tech companies race to resolve infrastructure bottlenecks. This environment is expected to support revenue and earnings growth for related equities, including DELTA. Although profit margins may face partial pressure from rising costs, top-line growth is anticipated to lift net profit both year-on-year and quarter-on-quarter.
Key risk factors to monitor remain ongoing tensions in the Middle East and elevated crude oil prices. Nevertheless, diplomatic negotiation efforts are emerging, with Pakistan acting as an intermediary to facilitate discussions between the United States and Iran, alongside ongoing diplomatic pushes in the Russia-Ukraine war. Any resolution in these geopolitical conflicts would alleviate pressure on global financial markets.
Mr. Koraphat expects the Thai bourse to move sideways today, with a higher probability of upside movement than a sharp downside decline. He highlighted the importance of the benchmark reclaiming the 1,560-point level, which aligns closely with a key medium-term moving average. Holding above this technical threshold would signal a positive market outlook, with a support level pegged at 1,545 points and a resistance level framed between 1,560 and 1,570 points.
For investment strategy, KSS recommends selective equities with strong earnings outlooks, focusing on the banking, energy, and technology sectors. The firm highlighted three top picks: KTB, PTTGC, and DELTA.
Starting with KTB, the stock is viewed as a standout performer in the banking sector following robust 3Q26 earnings, with buying interest expected to persist ahead of year-end dividend plays. Support is set at THB 42, with resistance at THB 45 and THB 46.
Regarding PTTGC, the stock is currently consolidating around THB 50, with a crucial support level at THB 48 – 49 that must hold to prevent further downside. Resistance is projected at THB 53 and THB 55.
For DELTA, despite heavy selling in the prior session, dip-buying emerged around its previous low of THB 232. KSS maintains a positive stance on its fundamental outlook, expecting revenue expansion to drive net profit growth both YoY and QoQ. However, investors remain cautious; support is assessed at THB 232 with a stop-loss trigger below THB 230, while a clear bullish reversal requires breaking above THB 260.
Additionally, Mr. Koraphat addressed investor concerns surrounding BBL regarding the valuation of its investment in Indonesia’s Permata Bank following a sharp decline in Permata’s share price. He noted that this issue is likely to impact trading sentiment around BBL rather than directly hit its profit and loss statement, as the asset is already consolidated into the bank’s financial statements.
Overall earnings for BBL came broadly in line with market consensus, albeit slightly below KSS estimates. The bank maintains a solid capital position and stands to benefit from integrating AI technology to enhance long-term operational efficiency.
Nevertheless, KSS expects KTB to continue leading the banking sector in the short term before KBANK follows suit. Key technical levels for KBANK should be monitored closely; reclaiming and holding above THB 240—near its 25-day moving average—would provide a stronger signal supporting a sector-wide banking recovery.
Regarding foreign capital flows, Mr. Koraphat noted that portfolio underweighting in Indonesian equities could prompt a rotation of funds into the Thai market, particularly into banking stocks. However, rapid inflows are not immediately anticipated, as current market sentiment remains focused primarily on selective stock-picking based on fundamental earnings strength.
