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Thai investors should focus on defensive stocks, particularly energy producers and banks with strong company-specific catalysts, as escalating geopolitical tensions and expectations of prolonged high interest rates reshape market sentiment, according to analysts.Asia Plus Securities (ASPS) recommends stocks that stand to benefit directly from rising oil prices or prolonged higher interest rates, highlighting PTT Exploration and Production (PTTEP), Krungthai Bank (KTB) and SCGJWD Logistics (SJWD) as its top picks.
PTTEP is expected to gain from soaring crude oil prices driven by the escalating Middle East conflict, supported by strong second-quarter earnings and an attractive dividend outlook.
KTB is favoured as high interest rates support net interest margins, underpinned by solid asset quality and a strong balance sheet.
SJWD is expected to post a clear earnings recovery in the second half, with analysts seeing significant upside from current levels.
