Sutthichai Kumworachai, Head of Investment Strategist at InnovestX Securities, wrote in a note that the Thai market may rebound, but emphasizing two influencing factors including the government censure debate on March 24-25, 2025, and trade war situation after the U.S. President Donald Trump announced that the tariffs will be in effect on April 2, 2025. However, in recent weeks, there were talks about the relaxation of trade policies, which eased the market concerns over the matter, although he advised investors to closely monitor the situation.
Meanwhile, the Thai market has partially recognized the effects of the trade war. Considering the year-to-date (YTD) returns, the performance of the Thai market was among the worst in the world. As such, Sutthichai recommends investors to keep an eye on negotiations between the U.S. leader and other major powers.
In the first three months of the year (January-March), the Thai market has steeply nosedived, opening a room for future rebound with supporting factors from the government’s stimulus measures, which it expects to realize in 2Q25. However, Sutthichai urged caution on the Thai economy and the market direction.
The rate cutting, LTV measure , and Thai ESG X fund may become additional supporting factors to ease the market pressure. Meanwhile, the share buyback announcement from PTT Public Company Limited (SET: PTT) highlighted the executive’s confidence in the company’s capability, and believing that its share price is still below the company’s actual value.
Furthermore, the PTT buyback is also mirroring the government push for listed companies to repurchase their shares.
With aforementioned supporting factors, Sutthichai anticipated the Thai market to stabilize above 1,200 points.
For investment strategy, the securities company still recommends its three main themes, believing that the yield will be far above market trading, along with these stocks being resilient toward market volatility.
1) Thai ESG X stocks, which were selected for its strong foundation, financial stability, and consistent dividends, these stocks have to receive at least A in ESG grading.
There are eight stocks in this theme, including five SET50: Advanced Info Service PCL (SET: ADVANC), Bangkok Bank PCL (SET: BBL), Bangkok Dusit Medical Services PCL (SET: BDMS), CP All PCL (SET: CPALL), and PTT.
Three in SET100: AP (Thailand) PCL (SET: AP), Bangkok Chain Hospital PCL (SET: BCH), and Betagro PCL (SET: BTG).
2) Dividend Stocks that estimated to pay the dividends within the next 1-2 months, and has at least 4% yields
These stocks includes: Banking stocks such as Krung Thai Bank PCL (SET: KTB), BBL, Kasikorn Bank PCL (SET: KBANK), and Real Estate stocks such as AP, and Supalai PCL (SET: SPALI).
3) Undervalued Stocks, focusing on stocks with low valuation and its earnings not recognized in the stock prices.
These stocks includes: Muangthai Capital PCL (SET: MTC), Minor International PCL (SET: MINT), Amata Corporation PCL (SET: AMATA), Berli Jucker PCL (SET: BJC) and Charoen Pokphand Foods PCL (SET: CPF).
