Surge in Foreign Investor Interest#
Recent feedback from the Jefferies Asia Forum 2026 indicates that foreign investor interest in Thailand's stock market has reached its highest level in recent years. This forum featured six leading Thai companies and discussions among institutional investors regarding the outlook for the Stock Exchange of Thailand (SET).
Political Stability as a Key Driver#
The improved political situation following recent elections has emerged as the main factor behind the rising demand for Thai stocks. However, investors are cautious and plan to observe how the new government may enhance the country's economic potential before making further investments.
Attractive Market Valuations#
A significant theme at the forum was the relocation of assets from developed markets, particularly the United States, to emerging markets like Thailand. Investors noted that attractive valuations are a key reason for this shift. They highlighted three main advantages of the Thai market: low valuations, high dividend yields, and the potential benefits of the SET’s Jump+ program. Many large-cap stocks in Thailand offer high dividend yields, which have been influenced by a market de-rating in recent years.
Risks and Sector Focus#
Despite the optimism, rising oil prices pose a primary risk to Thailand's market. Investors are concerned that the country, which heavily relies on imported energy, may face more significant negative impacts compared to other nations. While the government is working to manage domestic energy prices, investors pointed out the limited fiscal capacity to maintain such interventions, raising worries about potential market declines as energy inflation affects the real economy.
Discussions at the forum also focused on the banking sector, particularly how rising oil prices might influence interest rates and asset quality. The healthcare sector garnered attention as well, especially regarding its potential impacts on companies like BH.