Foreign capital inflows are expected to continue supporting Thailand's stock market in the second half of 2026, with the benchmark index potentially rising to 1,700 points, says Krungsri Asset Management (KSAM).Chief investment officer Sira Klongvicha said the global economy is expected to expand the rest of the year, assuming tensions in the Middle East do not escalate into a prolonged conflict.
The US economy is supported by investment in artificial intelligence (AI) infrastructure and resilient consumer spending backed by a strong labour market.
Global inflation is projected to rise modestly this year before easing in 2027, although higher energy prices and semiconductor costs could keep inflation elevated and leave room for the Federal Reserve to raise interest rates by another 25 basis points before year-end, he said.
KSAM maintains a neutral outlook on fixed income, saying opportunities for policy rate cuts remain limited despite attractive bond yields. Key risks include global inflation, Fed policy, oil prices and developments around the Strait of Hormuz, while the Bank of Thailand is expected to keep its policy rate unchanged at 1% for 1-2 years.
The company expects the Thai economy to gain momentum in the second half of 2026, supported by investment, exports, government stimulus, low interest rates and softer oil prices.
