Mr. Koraphat Vorachet, Assistant Director and Division Head of Research at Krungsri Securities (KSS), stated in the “Kaohoon” program on August 20, 2026, that the direction of foreign fund flows in the Thai stock market has turned positive. This follows a period from late July to the first two weeks of August when foreign investors trimmed their positions due to concerns over the Federal Reserve’s stance and portfolio adjustments heading into the end of the 2Q26 earnings season.
After the conclusion of the financial statement period, foreign investors have resumed accumulating Thai stocks. In the past four days, foreigners have recorded a net buy of around THB 3.5 to nearly THB 4 billion after accounting for the impact of big lot transactions. This reflects that foreign capital is flowing back into the Thai equity market and, significantly, signals that the main trend for capital flow remains unchanged—despite previous selling pressures from portfolio rebalancing at the end of earnings season.
A key factor lifting the sentiment for risk assets is the US Treasury’s move to increase the repurchase ceiling for long-term government bonds from a maximum of $2 billion per transaction to at least $4 billion. This exceeded market expectations and signaled that the U.S. government is focused on countering excessively high long-term yields.
Mr. Koraphat also noted another important aspect: This measure helps stabilize financing costs to enable large tech firms—or Hyperscalers—to continue mid- to long-term investments in AI. This trend spills over into Asia as technology infrastructure investments such as data centers, computing systems, and related facilities accelerate.
He believed that Asia is entering a new investment cycle, with similarities to the investment boom from 2002-2007. Credit growth in Asia (excluding China) is picking up, and signs of loan expansion in China itself are emerging, reflecting a broader investment expansion.
For Thailand, there is a potential benefit from direct foreign investment (FDI), especially in infrastructure to support AI and data centers—key drivers of the economy over the medium and long term. Stocks linked to this investment cycle are set to stand out.
The banking sector, in particular, still has positive momentum as a key funding source for the new investment round. Initially, loans will be led by large corporations before extending to other sectors of the economy.
Regarding the SET Index outlook, Mr. Koraphat projects that if supportive factors persist, the index could break through the key resistance level at 1,630 – 1,650 points—where the last tranche of foreign capital entered—and move toward KSS’ target of 1,680 points. Following the 2Q26 earnings season, many listed companies still have potential for upward earnings revisions. The short-term trading range is set with a support level at 1,610 points and a resistance level at 1,630 – 1,635 points, with the market likely to advance further.
For the electronics components sector, DELTA still has long-term growth opportunities as part of the AI infrastructure, especially for power management and cooling systems in data centers. However, the market is closely monitoring input costs and margins, with expectations of margin stabilization in the second half of the year as revenue continues to grow.
KCE is showing signs of recovery, driven by the electric vehicle (EV) industry, and the development of products related to AI Infrastructure, while HANA stands to benefit from lower bond yields and unique company-specific drivers.
For top picks, KSS prefers BH, THAI, and HANA. BH benefits from a strong foreign patient base, especially from the Middle East, while THAI gains from the ongoing recovery in tourism and the outlook for easing jet fuel costs.
Additionally, the downward pressure on THAI’s share price after the end of its share lock-up period has mostly been absorbed. Potential big lot trades are unlikely to alter its fundamentals, and there is also a potential of THAI’s inclusion in the MSCI Index in November—if it meets the tracking period and free-float stability criteria—which could further support the stock in the medium term.
