ASPS sees Thai equities recovering

Several factors to fuel a revival in H2

- NUNTAWUN POLKUAMDEE

Thai equities are expected to recover in the second half of 2025, supported by expansionary fiscal measures, a more accommodative monetary policy stance and key earnings drivers, according to Asia Plus Securities (ASPS).

According to Therdsak Thaveeteeratham, ASPS's executive vice-president, the government's forthcoming fiscal stimulus — likely to follow the approval of the 2026 annual budget — combined with anticipated policy rate cuts, could improve market sentiment. ASPS estimates that each 25-basis-point rate cut could lift the SET Index by around 70 points.

"The timing is now appropriate for a rate cut. Given the current economic conditions, we expect 1-2 policy rate reductions this year, each of which could act as a catalyst for the equity market," Mr Therdsak noted.

ASPS also sees additional upside from specific corporate catalysts. These include the anticipated mid-August relisting of Thai Airways International Plc (THAI) and a major strategic transaction by Siam Cement Group (SCC).

Both are expected to help push the SET's earnings per share (EPS) above 90 baht in 2025.