Thailand's Equity Market Faces Volatility Risk

Dow Jones
3 hours ago

0240 GMT - Equities in Thailand may continue to face volatility due to renewed domestic political uncertainty and softer demand after the strong market rally earlier this year, DBS Group Research analysts say in a report. The SET Index declined 1.8% in August, but continued to outperform regional peers, they say. The monthly correction was mainly driven by profit-taking in key sectors, particularly electronics. Concerns over the slowdown in 2Q GDP growth and rising political risks related to allegations surrounding the Senate election and suspected irregularities in local government recruitment examinations also weighed. However, DBS views these developments as sentiment-driven rather than a material deterioration in market fundamentals. DBS maintains its end-2026 SET Index target at 1720 and remains constructive on Thailand's earnings outlook.

 

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