Krungsri cuts SET outlook to 1,418

Krungsri Research has lowered its year-end Stock Exchange of Thailand (SET) index target to 1,418 points from a previous forecast of 1,660, reflecting a more conservative view of Thailand's economy, lower corporate earnings than expected, and global trade-related risks.

- NUNTAWUN POLKUAMDEE

Despite headwinds, Krungsri sees signs of improving market liquidity, thanks to new investment vehicles such as Thai ESGX funds, a proposed long-term equity savings scheme called Thailand Individual Savings Account (TISA), and a retirement lottery savings.

The research firm anticipates the Thai economy could expand by 2.7% this year. Structural reform efforts, including household debt restructuring through the “Khun Su, Rao Chuay” debt purchase initiative, are viewed as supportive over the medium term.

In addition, the continuation of large-scale infrastructure projects and Thailand’s emergence as a data centre hub for Chinese and US investors are expected to support the country’s S-curve growth strategy.

Draft legislation for entertainment complexes with legal casinos and the Southern Economic Corridor could also provide a lift for the economy, noted Krungsri.