Electronics, tourism lead monthly gains
Stock market analysts predict Thailand's benchmark index will continue its rise despite limited upside, saying Thai equities have become increasingly attractive to foreign investors due to deeply discounted valuations and improving earnings prospects.Arapat Sangkharat, chief executive of Maybank Securities (Thailand), said Thai equities have reached valuation levels that are difficult for global investors to ignore, prompting renewed foreign fund inflows and speculative buying.
According to Maybank's research team, the Stock Exchange of Thailand (SET) index gained 5% in May, driven largely by the global artificial intelligence boom, which lifted the electronics sector by 12.2%, making it a key contributor to the market's advance. Construction stocks surged 14.7%, while tourism-related shares gained 7.93%.
The Thai index soared to a three-year high on Thursday, surpassing 1,600 points as Asian bourses declined amid renewed fighting between the US and Iran, unsettling investors and triggering a broader shift towards safer assets.
Despite the improving outlook, Maybank expects the SET index to trade within a range of 1,540-1,630 points in June, warning that upside potential is becoming more limited. The brokerage believes future gains will be driven by sector rotation rather than a broad-based market rally.
