Pine Wealth sees upside for Thai equities

Political uncertainty remains a drag

- NUNTAWUN POLKUAMDEE

Though trade-related tariff risks have eased, the political vacuum remains an uncertainty for the Thai market, while attractive valuations and renewed foreign inflows present upside opportunities, says Pine Wealth Solutions Securities.

The main downside risk for the Stock Exchange of Thailand continues to stem from subpar economic growth, with the International Monetary Fund forecasting Thai GDP growth of only 1.8% this year and 1.6% next — levels seen as below the country’s potential, the brokerage said.

On the upside, the recently announced US tariff rate for Thai imports is in line with regional peers, which helps mitigate trade-related risks.

However, political instability remains unresolved following the Constitutional Court's suspension of Prime Minister Paetongtarn Shinawatra last month.