Krungsri Highlights Outstanding Picks as Thai Bourse Stabilizes

Mr. Koraphat Vorachet, Assistant Director and Division Head of Research at Krungsri Securities (KSS), stated in the “Kaohoon” program on July 23, 2026, that the selloff in the banking sector after earnings reports is beginning to slow. This comes as the market adjusts its investment positions in response to earnings results and assesses the revenue structure of each bank. Although most banks have reported solid or better-than-expected earnings, some still face concerns over pressure on net interest margins, as well as revenue structures that are not particularly outstanding. This has led to profit-taking and portfolio adjustments in recent periods. However, KSS believes that valuing banking stocks using the 5-year historical average may not reflect the current business structure, since banks worldwide are being re-rated due to new sources of revenue, such as wealth management, asset management, and other financial services. As for Thai banks, even though their revenue diversification does not yet match international peers, income from wealth management and sales of financial products is expected to grow and expand, supporting higher valuations for banking stocks going forward. At the same time, the credit cycle in Asia is beginning to recover, following investment in AI and technology infrastructure. Businesses are seeing increasing capital needs for upgrading technology systems, supporting data centers, and attracting foreign direct investment (FDI). Mr. Koraphat stated that Thai lending is expected to accelerate significantly, reflecting business investment demand, even as the Thai economy continues to face high household debt constraints. He noted that banking stocks are still not expensive, as the sector is still trading below the price book value (PBV) of one time. Banks that are likely to bottom out first include KBANK and KTB, with a focus on banks with strong asset quality, growing bancassurance and wealth management income, as well as positive loan outlooks. Furthermore, although some foreign investors have sold some banking stocks, they continue to buy into other sectors, particularly energy, indicating that funds are not leaving the market but are rather rotating across sectors. Midstream and downstream energy stocks are still in the early stages of an upcycle and show a strong profit outlook. KSS forecasts that the SET Index is likely to stabilize within range today, setting a resistance level at 1,660 points, and a support level at 1,630 points, with a support level at 1,625 points. The 1,630 – 1,650 zone was a key cost base for the previous long-term equity funds (LTFs), as such the index may move sideways and take time to break this level. Regarding the possibility that the U.S. could introduce tariffs under Section 301, Mr. Koraphat commented that if Thailand is subject to a 12.5% rate—the same as other countries—it should not be a significant concern, as it would not disadvantage Thailand in terms of competitiveness. However, a higher rate could indicate Thailand is under special scrutiny and would be a negative for the market. Thailand’s strengths remain its strategic location, geopolitical neutrality, established infrastructure, and its data center investment potential, all of which will support sustained capital flows and FDI in the long term. For investment strategy, KSS picks SCC as its preferred stock, following strong earnings results and a target price of THB 315. Meanwhile, PTT could see earnings forecast upgrades in line with strong group affiliate results. For banks, KBANK is favored for its outstanding performance and likelihood of bottoming out first.