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Equity analysts expect the recent 25 basis point rate cut in Thailand to boost fund inflows and support the SET index, targeting 1,300 points by year-end. Banking and finance stocks are favored, due to improving asset quality, better interest margins, and increased digital investment, which bolster operational efficiency and credit growth.
Krungsri Securities forecasts 2025 earnings per share at 87 baht, rising to 94 baht in 2026, with reduced market volatility and declining long-term fund redemptions expected to further stabilize the market. The rate cut could add roughly 55 points to the index, with large-cap stocks like Delta Electronics expected to recover from earlier sell-offs.
Meanwhile, InnovestX Securities views the rate cut as positively affecting short-term sentiment but warns of downside risks from political uncertainty and lack of new stimulus. They recommend a selective buy strategy in sectors like property, power, finance, and REITs to capitalize on lower costs and stronger consumer demand.