Foreign capital to support SET in second half

KUALA LUMPUR, 24 JULY 2026 —

Headline: Foreign capital to support SET in second half Lead: Foreign capital inflows are expected to continue supporting Thailand's stock market in the second half of 2026, with the benchmark index potentially rising to 1,700 points, says Krungsri Asset ... Body: Foreign capital inflows are expected to continue supporting Thailand's stock market in the second half of 2026, with the benchmark index potentially rising to 1,700 points, says Krungsri Asset Management (KSAM).

Chief investment officer Sira Klongvicha said the global economy is expected to expand the rest of the year, assuming tensions in the Middle East do not escalate into a prolonged conflict.

The US economy is supported by investment in artificial intelligence (AI) infrastructure and resilient consumer spending backed by a strong labour market.

Global inflation is projected to rise modestly this year before easing in 2027, although higher energy prices and semiconductor costs could keep inflation elevated and leave room for the Federal Reserve to raise interest rates by another 25 basis points before year-end, he said.

KSAM maintains a neutral outlook on fixed income, saying opportunities for policy rate cuts remain limited despite attractive bond yields. Key risks include global inflation, Fed policy, oil prices and developments around the Strait of Hormuz, while the Bank of Thailand is expected to keep its policy rate unchanged at 1% for 1-2 years.

The company expects the Thai economy to gain momentum in the second half of 2026, supported by investment, exports, government stimulus, low interest rates and softer oil prices.

Stronger technology exports, rising data centre investment and improving political stability are positive long-term drivers.

However, high household debt, rising living costs and inflation remain risks to domestic consumption, while geopolitical uncertainty and potential El Niño conditions could affect agricultural output, food prices and inflation.

KSAM remains constructive on Thai equities, citing continued government stimulus, sustained foreign fund inflows and easing geopolitical tensions. The firm has a positive view on Thai banking and tourism stocks, while continuing to overweight AI and Asian technology equities, particularly in China.

Applications for Board of Investment privileges exceeded expectations for the first six months, while projections for Stock Exchange of Thailand 2026 earnings per share were upgraded 1.3% since the start of the year to 96.87 baht.

The asset manager believes banking and tourism stocks are well-positioned to benefit from stronger economic activity and improving investor confidence.

Despite concerns over possible Fed rate hikes and geopolitical tensions, KSAM views global equities as attractive because corporate earnings continue to be driven by technology companies.

Supaporn Leenabanchong, managing director of KSAM, said the firm had 691 billion baht in assets under management (AUM) in the first half of 2026, ranking fifth in Thailand's mutual fund industry as of June.

AI remains the firm's highest-conviction investment theme, supported by sustained investment in AI infrastructure and growing demand for AI applications.

KSAM recommends gradually accumulating global tech and Asia tech funds during periods of weakness in semiconductor stocks, while maintaining an overweight position in Chinese technology companies.

The company recently expanded its product lineup through a partnership with Invesco, launching three new funds: KF-GEI, KF-SP500M and KF-SP500MFX.

KSAM plans to introduce additional investment products while strengthening digital services during the second half of the year, said Mrs Supaporn. Source: RSS Published: 2026-07-23T18:01:00.000Z Region: ASEAN Topic: Economy (AI-assisted rewrite, based on the original source)

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