Mr. Koraphat Vorachet, Assistant Director and Division Head of Research at Krungsri Securities (KSS), stated in the “Kaohoon” program on May 21, 2026, that the Thai market may potentially move sideways-up, supported by the risk-on investment sentiment in global equity markets. This follows the market’s increased focus on the potential easing of tensions between the U.S. and Iran, more so than the Federal Reserve meeting minutes (FOMC Minutes).
The key factor stems from a statement by U.S. President Donald Trump, who said that talks with Iran are in their final stages. This has led to a sharp drop in crude oil prices by around $6 – 7 per barrel, while the U.S. 10-year bond yield has fallen below 4.60%, and the 30-year bond yield is down to the low 5% range. These factors help reduce pressure on equity markets.
For the Thai bourse, the analyst set a support level at 1,520 points and resistance levels at 1,545 and 1,560 points. The leading group is still likely to be the electronics part sector, which benefits from the AI Infrastructure trend and significantly better-than-expected earnings by Nvidia.
Mr. Koraphat noted that investment in AI infrastructure is currently a key theme in global markets, especially in North Asia such as South Korea, Taiwan, and China, which receive support from advance orders by hyperscalers and large U.S. tech firms. This has resulted in strong gains for stocks in the supply chain, such as semiconductors and electronics components.
At the same time, Thailand has the opportunity to benefit from this new investment trend, particularly for stocks related to technology infrastructure, data centers, energy, industrial estates, and commercial banks, which may become beneficiaries of the new investment cycle during 2026-2030.
However, the analyst indicates that even though 1Q26 earnings of listed Thai companies were strong at around THB 347 billion, the market remains wary of how much the impact from Middle East conflicts will be reflected in 2Q26.
Mr. Koraphat believes that the chance of a negative surprise is not high since most investors have already set cautious assumptions for 2Q26 earnings, and several groups of stocks connected to war-related developments have already experienced significant pressure. If the situation eases by the end of May, the companies’ operating results could come in line with expectations, providing a foundation for market recovery.
Regarding fundamentally attractive stocks, the analyst continues to favor the AI Infrastructure and New Investment Cycle themes. These include industrial estate stocks like AMATA, power plant stocks such as GULF and GPSC, utilities linked to water and estates like WHA, as well as commercial banks such as KBANK and KTB, all of which reported strong 1Q26 earnings and have already set aside provisions to some extent.
The analyst also anticipates further growth in the energy sector, even though oil prices have dropped based on expectations of easing tensions. Preferred stocks are PTT, PTTGC, IVL, and TOP.
For short-term speculation, GPSC stands out, as do tourism stocks such as AOT and BA, which have potential for recovery driven by lower oil prices and improved investment sentiment.
Mr. Koraphat further added that selling pressure from funds in the Thai market since the start of the year is partly due to profit-taking near the 1,500-point level, portfolio adjustments toward overseas investments, and LTF fund redemptions reaching maturity. However, if the index can move past the 1,520-1,550 range, this pressure may ease.
Foreign investors remain interested in Asia stocks related to AI infrastructure, noting that the second half of this year may be a period for increasing allocations to semiconductors, commercial banks, industrial estates, and power plants, all of which are part of the long-term technology and infrastructure investment ecosystem.
