Foreign brokerages remain bullish on Thai equities, noting they could raise their Stock Exchange of Thailand (SET) index targets if the government delivers on key economic and investment policies.
CLSA Securities (Thailand), Kiatnakin Phatra Securities, BofA Securities and UBS Securities (Thailand) set year-end SET index targets of 1,680 points, while DBS Vickers Securities (Thailand) expects 1,720 points.
Speaking at the Thailand Focus 2026 investment forum, Pornchai Prasertsintanah, vice-chairman of investment banking for Southeast Asia and country head Thailand at UBS Securities (Thailand), said foreign institutional investors remain underweight on Thai equities, with cumulative net selling of US$10-13 billion over the past three years, although buying has recently resumed.
He said investors are conducting more in-depth research on Thailand, but a significant increase in allocations will depend on policy execution, particularly the power development plan and measures to promote artificial intelligence (AI) and data centre investment.
Global funds want to see stronger participation by local funds first, which could help build confidence and encourage foreign investors to return more aggressively, said Mr Pornchai.
Supachoke Supabundit, president of Kiatnakin Phatra Securities, said strategists typically begin issuing forecasts for the following year in the fourth quarter. If earnings estimates and economic growth improve, there could be further upside to current SET index targets, provided the government follows through on its policies, he noted.
SET president Asadej Kongsiri said foreign investor sentiment towards Thailand has improved, particularly following the recent election that provided greater political clarity.
Foreign investors are increasingly constructive, selective and growth-focused, with interest in digital infrastructure, data centres, AI, private sector investment and the energy transition, while focusing on companies with strong earnings visibility and competitive advantages rather than buying across the market, said Mr Asadej.
Samir Kogar, country head of CLSA Securities (Thailand), said political stability, geopolitical neutrality and Thailand’s supply chain and logistics capabilities are key attractions. The country’s potential with AI and data centres also provides room for growth.
Thai equities remain relatively attractive on valuation, with the forward price-to-earnings ratio at just over 12 times, excluding some big-cap companies such as Delta Electronics (Thailand), compared with about 15 times for regional markets.
The forum attracted 220 institutional investors from 74 financial institutions worldwide, including first-time participants from Switzerland, New Zealand and Israel seeking to gain insights into Thailand’s development and growth potential.
Executives from 77 companies listed on the SET and the Market for Alternative Investment with a combined market capitalisation of 16 trillion baht, representing 80% of the entire market as of Aug 25, participated in the three-day event.
“A shift has occurred from information gathering towards actual investment interest in opportunities,” said Mr Asadej, adding that improving market performance, stronger foreign inflows, credit rating upgrades and government policies supporting investment have strengthened Thailand’s appeal in the eyes of global investors.