Bullish momentum builds for Thai stocks, 1,700 beckons

KUALA LUMPUR, 6 AUGUST 2026 —

BANGKOK – Thailand’s benchmark stock index is poised for further gains, with analysts at the Federation of Thai Capital Market Organizations (FETCO) forecasting a climb to 1,700 points within the next year, driven by sustained foreign capital inflows, rising foreign direct investment (FDI), and improving corporate earnings.

Paiboon Nalinthrangkurn, FETCO Chairman, said the Thai market is likely to maintain its upward trajectory over the next one to two years despite risks such as geopolitical tensions in the Middle East and potential global trade tariffs. He highlighted resilient global economic growth, Thailand’s neutral geopolitical stance, and increasing FDI as key supportive factors.

While FDI may take time to fully translate into economic expansion, it is expected to become a long-term driver for the Thai economy.

Analysts project annual earnings growth of 8–10% for listed companies over the next three years. Foreign investors have returned to Thai equities after a decade of net outflows totaling 761 billion baht, with net purchases of 75.9 billion baht recorded in the first half of 2026. Further inflows are anticipated in the coming months.

Thai equities remain attractively valued, with the market trading at a price-to-earnings ratio of about 13.3 times, excluding shares of DELTA due to volatility. FETCO noted that over 470 companies—representing roughly 61% of listed firms—currently trade below their book value. The Jump+ initiative, aimed at enhancing transparency and unlocking shareholder value, is expected to provide long-term benefits.

On the proposed Thailand Individual Savings Account (TISA), Paiboon said the program has evolved from a short-term stimulus into a long-term savings vehicle designed to encourage disciplined investing while ensuring stable liquidity for the capital market. Addressing concerns over the Thailand Securities Depository (TSD) data leak, he stated that investor sentiment remained largely unaffected due to swift detection and containment.

However, he emphasized the need for stronger cybersecurity measures across capital market organizations amid rising cyber threats.

Paiboon also downplayed the impact of recent weakness in U.S. technology stocks on Thailand, noting that many local companies operate in midstream and downstream segments of the semiconductor supply chain, which continue to benefit from AI-driven demand and data center expansion. FETCO identified banking, energy, telecommunications, digital infrastructure, industrial estates, tourism, and retail as key sectors with strong potential.

Companies expected to gain from the Jump+ value enhancement initiative were also highlighted as attractive investment opportunities.