CGSI uneasy on new clashes

Spat with Cambodia still key risk factor

- NUNTAWUN POLKUAMDEE

The reignition of border clashes between Thailand and Cambodia is expected to weigh on trade, tourism and investor sentiment, according to CGS International Securities (CGSI).

Kasem Prunratanamala, head of research at CGSI, said that overall the situation remains a key risk factor that investors should watch closely. While the immediate economic impact has been manageable, any escalation or prolonged conflict could further erode confidence, disrupt trade and tourism, and heighten political uncertainty ahead of the next election, he warned.

Nevertheless, CGSI yesterday forecast the SET Index to reach 1,400 points in 2026, even though the market is expected to remain under pressure in the first half of the year due to domestic political uncertainty.

The brokerage expects sentiment to improve in the second half as the political outlook becomes clearer, new stimulus measures are rolled out, interest rates begin to decline and foreign fund inflows return, supported by attractive stock valuations.