Kasikorn Asset Management Public Company Limited (KAsset) stated that the announcement of dissolution of the parliament last week came earlier than the market had anticipated, which was originally expected for late January 2026.
By law, a new election must be held within 45-60 days after the dissolution, setting a timeframe of late January to February 2026. During the caretaker government period, the administration may be unable to fully implement key economic stimulus measures, including the “Half-Half Phase 2” project and TISA-related measures, as well as managing the Thai-Cambodian conflict.
Impact on the Thai stock market and investment outlook: As the early dissolution of parliament adds policy uncertainty. This is likely to prompt a short-term “risk-off” sentiment in the market, particularly among sectors dependent on government spending or direct stimulus projects. Moreover, delays in approving new measures and ongoing ambiguity regarding the Thai-Cambodian dispute may weigh on foreign sentiment and maintain the SET Index in a sideways down trend until the election and formation of a new government are clarified.
Investment views and recommendations: Use the period of volatility before and after the election to gradually accumulate quality stocks and high-dividend equity funds. Avoid speculative bets on the election outcome or the progress of individual stimulus measures. High-dividend stocks can help reduce portfolio volatility during periods of political uncertainty, as dividend inflows help offset potential downside risk if the index fluctuates or declines in response to political news.
For equity funds recommended by KAsset, the focus is on funds investing in quality, high-dividend stocks, such as K-VALUE Fund and K-STARRMF Fund for tax deduction. The main strategy emphasizes large-cap stocks with strong fundamentals, stable cash flows, and limited dependence on direct government projects—such as leaders in industries benefiting more from long-term economic structure than short-term policy.
For recommended fixed income funds, KAsset suggests: K-SF Fund for short-term (1-3 months) investment, K-SFPLUS Fund for short-term (3-6 months) investment, K-FIXED Fund for at least 1-1.5 years, K-FIXEDPLUS Fund for at least 1-1.5 years, and K-GDBOND Fund which diversifies across multiple global fixed income instruments through its master fund, PIMCO GIS Income Fund.
