Thai Hire Purchase Stocks Decline over Concerns on New Loan Measure, Prompting Sector Rotation

On Thursday at 3:24 PM (Bangkok time), the share price of Muangthai Capital Public Company Limited (SET: MTC) dropped by 3.97% or THB 1.25 to THB 30.25, with a trading value of THB 274.19 million.

Srisawad Corporation Public Company Limited (SET: SAWAD) slumped by 6.45% or THB 1.60 to THB 23.20, with a trading value of THB 447.78 million.

Tidlor Holdings Public Company Limited (SET: TIDLOR) fell by 3.55% or THB 0.60 to THB 16.30, with a trading value of THB 81.13 million.

 

Kasikorn Securities (KS) stated that hire purchase stocks have declined, contrary to banking stocks. The overall outlook for the hire purchase sector continues to face risks from the slowing economy, creating the likelihood that loans may also continue to slow down, with concerns over the possibility of an increase in non-performing loans (NPLs).

Additionally, there are worries about yields potentially being pressured due to the new hire purchase regulations that will take effect on June 1, 2026.

Part of the pressure also comes from sentiment surrounding AEONTS, whose portfolio quality remains weak, prompting investors to rotate their investments towards other financial stocks—especially banking stocks that continue to perform well and offer high dividend yields.