The artificial intelligence (AI) trend is expected to create selective buying opportunities for Thai stocks in the second half of 2026 as market volatility escalates, analysts say, advising investors to increase cash holdings to 20-25% of their portfolio.Thailand's stock market is projected to face increased volatility in July, with Bualuang Securities (BLS) forecasting a correction of around 100 points or 5-8% before conditions become more favourable for long-term investors.
The expected pullback will likely be driven by a correction in global technology stocks, slowing corporate earnings, tighter global liquidity and domestic political uncertainty, said Chaiyaporn Nompitakcharoen, managing director of sales and trading business at BLS.
The brokerage highlighted Delta Electronics (Thailand) (DELTA) as the key risk for the Stock Exchange of Thailand (SET) index. With DELTA accounting for about a quarter of the SET's capitalisation, every one-baht move in its share price shifts the benchmark index by about one point.
As the Nasdaq is expected to correct by 8-10% after a strong rally, DELTA could face similar selling pressure, weighing heavily on Thai equities. The brokerage also believes technology stocks have become stretched relative to fundamentals, while rising volatility indicates institutional investors have started taking profits.
