BANGKOK, Thailand – The Thai stock market saw a strong rally on Sep 6, closing up by 23.36 points to settle at 1,427.64 points, a 1.66% increase, with a trading value of approximately 107.4 billion baht. Analysts credit this rise to significant foreign fund inflows (Fund Flow), particularly into the banking sector, as investors shift from tech stocks to value stocks.
Sarawut Techowalit, Senior Director of Securities Analysis at RHB Securities (Thailand), explained that foreign investors targeted major Thai banks such as BBL, KBANK, KTB, and SCB, whose prices had dropped earlier due to non-performing loan (NPL) concerns, making them attractive at below book value.
Sarawut noted that KBANK and KTB still have upside potential, trading at 0.68 times book value with room to rise to 0.8 times. Meanwhile, SCB and TTB are now trading at 0.8 times, up from 0.6.
Fund inflows were not limited to Thailand but were also seen across regional markets, including the Philippines, Vietnam, and Indonesia. Investors shifted from growth-oriented tech stocks to value stocks, particularly in Thailand and Indonesia.
RHB Securities recently raised its year-end SET index target to 1,560 points, reflecting a price-to-earnings (P/E) ratio of 16, up from the previous target of 1,430. This revision comes amid expectations of new investments, including 100 to 150 billion baht from the Vayupak Fund and ongoing foreign fund inflows.
Looking ahead, next week’s market movement will be influenced by tonight’s U.S. non-farm payroll and unemployment data for August. If the U.S. unemployment rate remains at 4.3%, it could prompt the Federal Reserve to consider a rate cut of up to 0.50% in September.
Key resistance for the SET Index is projected at 1,460 points, with support at 1,410 points.
