Kasikorn Securities (KS) has maintained its SET Index target for May at 1,520 points, recommending KCE (upgraded target price at THB 37.0), DELTA, KKP, CPN, and AURA as top investment picks for the month.
Regarding earnings, earnings per share (EPS) for the market remain in an upward adjustment phase at THB 98, with the growth being driven predominantly by the energy, petrochemical, and electronics sectors. However, Kasikorn anticipates that within the next one to two months, there will likely be earnings downgrades among domestic-oriented groups, potentially resulting in EPS moving back to around THB 95.
For the second quarter of 2026, the brokerage expects the electronics and industrial estate sectors to deliver particularly strong performances.
In terms of technical outlook, Kasikorn assesses the key support level for the SET Index at approximately 1,410 points, which is based on THB 97-98 EPS and calculated at -0.5 standard deviations, or a 14.5x price-to-earnings multiple.
Historically, the ‘Sell in May’ phenomenon is not perceived as a major concern, according to the analyst.
Positive factors supporting the market include the first quarter GDP, scheduled to be announced on 18 May, which has the potential to beat expectations on the back of strong exports and domestic consumption. Additionally, the government’s large-scale economic stimulus measures, valued at THB 130 billion, and other supporting initiatives are expected to provide further upside.
On the negative side, risk factors remain. These include portfolio revision of the MSCI Index, rising bond yields both internationally and in Thailand, a pronounced increase in global and domestic inflation, and the limited scope for further monetary policy easing.
