Mr. Koraphat Vorachet, Division Head of Research at Krungsri Securities (KSS), stated in the “Kaohoon” program on February 26, 2026, noting that the 20-point rally in the Thai stock market during Wednesday’s session reflects three key positive factors:
- Gradual certification of MP election results by the Election Commission, which has eased political risk and heightened expectations for the formation of a majority government;
- Policy rate cut by the Bank of Thailand’s Monetary Policy Committee; and
- Ongoing political developments proceeding in line with legal processes.
Mr. Koraphat believes the most influential factor for the market’s direction is the interest rate reduction. The cut signals the central bank’s clear intention to support economic recovery and potentially marks the end of the current rate cycle. Moreover, the policy space remains at approximately 0.50%, allowing room for further cuts if economic growth lags expectations.
Additionally, the revised outlook for inflation, now anticipated to enter the policy target range later than previously expected, indicates that a period of monetary easing may be prolonged for at least 18 months. This stance is expected to complement fiscal policies and attract increased foreign direct investment (FDI).
Krungsri maintains a positive view on Thai equities, citing that current market valuations remain undemanding. The current Price-to-Earnings (PE) ratio of the SET Index is around 14 times, below its long-term average of approximately 17 times, leaving room for large-cap stocks to move higher—especially in sectors benefiting from a new investment cycle.
- Banking Sector: While lower rates may squeeze net interest margins in the short term, the robust capital positions of many banks enable them to maintain high dividend payouts, with some even announcing special dividends and share buybacks. If the investment cycle picks up, loan growth and earnings could recover. Notable names include: KTB (special dividend), BBL, KBANK, SCB, and TTB
- Industrial Estates: Labeled as “The Winner” from the FDI uptrend and data center expansion, standout stocks in this sector include AMATA and WHA.
- Power Sector: Companies such as GULF and GPSC are well-placed to benefit from infrastructure and new industry growth.
- Retail Sector: Led by CPALL, these companies typically rebound in line with domestic economic conditions.
Krungsri’s top stock picks and investment recommendations for traders and accumulators include:
- KTB: Target price at 38 baht, support level at 34.50 baht, resistance level at 36.00 baht.
- CPALL: Support level at 52.00-52.50 baht, resistance level at 54.00-55.00 baht.
- AMATA: Gradual accumulation suggested, with a breakout above 20 baht signaling a new upward cycle; support level at 19.30-19.50 baht.
