Krungsri Anticipates Sector Rotation to Energy and Petchem Stocks, Recommending PTTGC and IVL

published 1 d ago · en · source ↗

Affected tickers

Per-ticker News Sentiment Indicator

ADVANCother · positive · med
The analyst noted renewed buying interest in ADVANC as part of a sector rotation into telecommunications, supported by expectations of strong 2Q26 earnings.
BBLother · negative · med
Krungsri Securities anticipates fund rotation out of the banking sector, noting that BBL may face selling pressure due to underwhelming financial statements.
BEother · neutral · high
The article focuses exclusively on the Thai stock market and specific Thai companies, containing no information regarding Bloom Energy Corp.
GLOBALother · neutral · high
The article discusses sector rotation into energy and petrochemicals but does not mention GLOBAL, resulting in no material impact on the stock.
IVLother · positive · med
Krungsri Securities anticipates a sector rotation into petrochemicals, projecting IVL to benefit from improved product price spreads and anticipated 2Q26 profits of about THB 6 billion.
PTTGCother · positive · med
Krungsri Securities expects PTTGC to report 2Q26 profits of 9 billion THB due to improving product spreads and reduced stock losses, alongside a sector rotation into petrochemicals.
SCBearnings_miss · negative · med
The analyst noted that SCB may face selling pressure due to an increase in non-performing loans (NPL) despite reporting solid profits.
TRUEother · positive · med
Krungsri Securities noted renewed buying interest in TRUE as part of a potential sector rotation into telecommunications.

Article body

Mr. Chaiyot Jiwangkul, Assistant Director of Securities Analysis at Krungsri Securities (KSS), during the “Kaohoon” program on July 22, 2026, stated that the Thai stock market is likely to consolidate in the short term, even as regional equity markets show improvement following a rebound in global technology stocks. This may cause foreign fund inflows from the tech sector to slow down. There is a possibility of fund rotation out of the banking sector—following a series of earnings announcements—into the energy, petrochemical, and telecommunications sector, which are receiving support from rising oil prices and the expectation of strong 2Q26 earnings. Meanwhile, there are renewed buying interests in ADVANC and TRUE. For the banking sector, financial results have been both above and below expectations. As a result, stocks with underwhelming financial statements may continue to face selling pressure, especially BBL and SCB. Although SCB reported solid profits, the level of non-performing loans (NPL) has increased. Nevertheless, should stock prices fall significantly, buying interest is expected to return, as loans still have room to grow in the new investment cycle. Mr. Chaiyot also mentioned the Thailand Individual Savings Account (TISA) scheme. If investors are able to allocate up to THB 600,000 of investment annually for tax reduction and investment is allowed directly in the Thai bourse, it would be a positive factor for liquidity and help reduce volatility, as investors must hold positions for the long term. The main investor base is expected to be salaried employees, resembling RMF and Thai ESG funds. Regarding the BOI to IPO measure, details such as business type and company size must be followed closely. Should it attract large companies from new industries to list, it would increase the market’s value and enhance the appeal of the Thai benchmark index. However, if only small companies are involved, the overall market impact would be minimal. As for investment strategies, KSS recommends a “Buy” on PTTGC with a target price of THB 45, expecting 2Q26 profits at around THB 9 billion due to improving product spreads and lower-than-expected stock losses. A “Buy” is also recommended for IVL , with a target price of THB 27 and anticipated 2Q26 profits of about THB 6 billion, driven by improved product price spreads.