Mr. Koraphat Vorachet, Assistant Director and Division Head of Research at Krungsri Securities (KSS), stated in the “Kaohoon” program on May 7, 2026, that the global investment community continues to closely monitor the meeting between President Donald Trump of the United States and President Xi Jinping of China in Beijing.
Key issues anticipated by investors include the relaxation of trade and technology restriction measures between the two countries, especially concerning the export of rare earth minerals from China, which are crucial raw materials for the development of the U.S. technology industry.
There is also the possibility that the U.S. may allow greater opportunity for technology companies from both countries to collaborate in business, as it has been noted that top executives from leading U.S. companies joined President Trump’s delegation. Mr. Koraphat further said that this situation reflects the potential for U.S.-China technological cooperation, which could help balance power between the two nations.
He also believes that the discussions may cover the Middle East situation, as high oil prices not only impact the Asian or Chinese economy, but also affect the U.S. economy.
Thus, market participants expected that the outcome of the high-level negotiations will help relieve pressure on the global economy and the overall investment climate.
Domestically, Thai listed companies have reported better-than-expected results for a sustained period, with Thai stock market profits clearly improving for the fourth consecutive month — a trend not seen in about three years. This indicates that the profit base of the Thai bourse is recovering and is supported by fundamentals, which have driven the index upward.
However, the continuing factor to monitor is oil prices; if oil remains above $100 per barrel for an extended period, this may pressure profit forecasts moving forward. This time, conditions differ from 2022, when energy sector profits rose briefly before falling, as many domestic play stocks are now past their low point and have reported results exceeding market expectations.
The increase in the Thai stock market this year is partly supported by DELTA. Mr. Koraphat pointed out that Thai stocks have risen about 20% since the start of the year, with around 12% of this attributed to DELTA and 8% to other stocks. This reflects that many Thai stocks are still undervalued and have potential for further price appreciation.
DELTA’s rise was primarily due to a significant change in market expectations. Previously, there were concerns that DELTA would be downgraded in the MSCI index by about $150 million, but the actual outcome was a weight increase of about $50 million, quickly leading to short covering.
For short-term investment, stocks recommended include CPALL, which has consistently posted strong results reflecting resilient business adaptation, even though the stock price is pressured by negative sentiment. The sector has appeared to pass its low point and is steadily recovering.
Additionally, IVL may benefit from U.S.-China trade talks, and WHAUP, which reported good results and may appeal to short-term speculative investors.
