Rising border tensions weigh on investor sentiment

Escalating tensions along the Thai-Cambodian border are affecting investor sentiment and threatening several key business sectors, especially beverages, tourism, retail oil and exports, according to Daol Securities (Thailand).

- NUNTAWUN POLKUAMDEE

Mongkol Puangpetra, executive vice-president for strategy research at Daol, issued a cautious investment outlook, highlighting specific downside risks for companies with significant exposure to Cambodia.

The firm singled out Samart Aviation Solutions (SAV) and Carabao Group (CBG) as the most vulnerable in this climate.

SAV, which derives all of its revenue from its air traffic control concessions in Cambodia (valid through 2051), is viewed as highly sensitive to any deterioration in Thai-Cambodian relations. Daol recommends postponing investments in SAV until the situation stabilises, citing heightened geopolitical risk.