Pundits push high-dividend stocks for Q3

Politics not expected to have much impact

- NUNTAWUN POLKUAMDEE

Analysts recommend a focus on high-dividend, low political-risk stocks in the third quarter of this year.

They said the suspension of the prime minister by the Constitutional Court on Tuesday had a minimal impact on investor confidence as the cabinet remains fully functional and can proceed with the 2026 budget deliberations without disruption.

Apichart Phubancherdkul, head of strategy research at Tisco Securities, said the brokerage downgraded its year-end Stock Exchange of Thailand (SET) index target to 1,208 points due to rising risks, down from 1,337.

The company also slashed its 2026 year-end target to 1,279 points, down from 1,405, citing headwinds including political instability, a static tourism recovery and global trade tensions.

“Given elevated uncertainty, it’s prudent to lower growth expectations for the Thai equity market)” said Mr Apichart.

Tisco expects the SET index to fluctuate between 1,000 and 1,160 points in July, and it remains cautious about the outlook for the second half of 2025.

The bourse has underperformed regional peers, declining 22% year-to-date, compared with gains of 8% for the MSCI World index and 14% for the MSCI Asia ex-Japan index.

Political instability in Thailand continues to be a key concern, noted the brokerage.