Interest rate cut to boost inflows for Thai stocks

Equity analysts expect increased fund inflows to the Thai stock market following a domestic policy rate cut of 25 basis points (bps) this week, supporting valuation and investor sentiment, driving the Stock Exchange of Thailand (SET) index to 1,300 points by year-end.

- NUNTAWUN POLKUAMDEE

Banking and finance stocks remain the preferred sectors, supported by improving asset quality, better cost management, and rising net interest margins, said Koraphat Vorachet, assistant managing director and head of research at Krungsri Securities (KSS).

“The banking sector is well-positioned to benefit from the easing rate cycle,” said Mr Koraphat.

He said banks are expected to post improvements in net interest margins, loan quality and transaction fee income, while accelerating the adoption of artificial intelligence and technology infrastructure to enhance operational efficiency. Similar digital investments by large corporations are expected to support more confident credit expansion and business growth.