Shares tied to Thailand’s domestic economy outperformed on Thursday amid signs of stabilizing political dynamics, according to a market strategy note from Krungsri Securities (KSS). The brokerage believes investors are revisiting local sectors such as retail, hospitals, and tourism with a renewed sense of optimism, following improved visibility on key political developments and economic risks.
KSS strategists highlighted that expectations are increasingly centering around Thailand finding a way through its political transition. Whether through the successful appointment of a new prime minister, the formation of an interim government, or an immediate dissolution of parliament, the analysts expect these scenarios to remove a significant element of uncertainty that previously pressured local equities.
Another catalyst was the Senate’s approval of the 2026 fiscal budget bill, which has helped ease market concerns over potential economic fallout in the pre-election transition phase. As political risks subside, “domestic play” stocks are showing signs of a possible re-rating after languishing in deep value territory for months.
In terms of sector outlook:
- Retail: Same-store sales are bottoming out, and KSS expects a recovery trajectory moving into the second quarter of 2025.
- Hospitals: A rebound in patients from the Middle East is providing a positive signal for private healthcare names.
- Tourism: While September may see a temporary dip in visitor numbers on a month-to-month basis, KSS projects a surge from October, bolstered by China’s Labor Day holidays and the start of high season.
Stocks to Watch: KSS Top Domestic Picks
Krungsri Securities recommends selective exposure to domestic sectors, noting that key names remain undervalued:
- CP All (CPALL, 2025 Target: THB 80) in retail,
- Bumrungrad Hospital (BH, 2025 Target: THB 200) among hospitals,
- Centara Hotels & Resorts (CENTEL, 2025 Target: THB 33) in the hotel space,
- The Erawan Group (ERW, Consensus Target: THB 3.1) for speculative plays in hospitality.
“Domestic sectors are poised for a rapid re-rating as political uncertainty dissipates,” KSS noted.
