SET target of 1,710 points for mid-2027
The brokerage believes the current upcycle still has plenty of run, potentially up to 12 months as foreign fund flows continue to accumulate.
Thailand's stock market is expected to benefit from a global manufacturing recovery, returning foreign capital and growth in artificial intelligence (AI) and data centre investments, says Bualuang Securities (BLS), with the benchmark index projected to top 1,700 points next year.The brokerage expects foreign investment inflows into Thai equities to continue through the first half of 2027, potentially reaching 160-200 billion baht, as the global manufacturing cycle recovers and international investors gradually return to the Thai market, said head of equity research Piriyapon Kongvanich.
Historical data shows foreign fund flows typically remain positive for 10-12 months during an upcycle in global purchasing managers' indices. Roughly 75 billion baht has flowed into Thai equities so far in the current cycle, suggesting further inflows could emerge through the first half of next year, he said.
BLS set a Stock Exchange of Thailand (SET) index target of 1,710 points by mid-2027, based on projected earnings per share of 98 baht and a fair price-to-earnings ratio of 16.7-17.4 times. The downside level is estimated at around 1,550 points, assuming no escalation into full-scale war in the Middle East.
