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Limited upside ahead for rising SET index

4 min read

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Limited upside ahead for rising SET index

Stock market analysts predict Thailand's benchmark index will continue its rise despite limited upside, saying Thai equities have become increasingly attractive to foreign investors due to deeply discounted valuations and improving earnings prospects.

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Summary

Arapat Sangkharat, chief executive of Maybank Securities (Thailand), said Thai equities have reached valuation levels that are difficult for global investors to ignore, prompting renewed foreign fund inflows and speculative buying.

According to Maybank's research team, the Stock Exchange of Thailand (SET) index gained 5% in May, driven largely by the global artificial intelligence boom, which lifted the electronics sector by 12.2%, making it a key contributor to the market's advance. Construction stocks surged 14.7%, while tourism-related shares gained 7.93%.