Thailand's equity market is expected to maintain positive momentum in the second half of 2026, supported by improving domestic fundamentals, easing geopolitical tensions and lower energy costs, though global uncertainties and valuation concerns could limit upside potential, says BBL Asset Management (BBLAM).Isara Ordeedolchest, deputy managing director and head of investment research at BBLAM, said several sectors continue to offer attractive growth opportunities despite heightened market volatility. Banks, tourism-related businesses, commerce and construction material companies are expected to remain among the key drivers of the Stock Exchange of Thailand (SET) during the remainder of the year.
"The investment momentum is improving, and several sectors still have room for earnings growth," he said. "However, at around 1,600 points the Thai index is approaching its fair-value range based on current fundamentals, which could limit significant upside in the near term."
BBLAM maintains its year-end target for Thailand's benchmark SET index at 1,600 points, although the market could potentially advance towards 1,700 points if foreign capital inflows return in a meaningful way.
Such a scenario is viewed as more likely in 2027 as global investors gradually rebuild exposure to emerging markets, said Mr Isara.
