Thailand Equity Strategy Raising index targets on strong 1Q results, but strength will be contested in the near term

Research evidence excerpt

Thailand Equity Strategy Raising index targets on strong 1Q results, but strength will be contested in the near term

Khoi Vu, CFA AC Global Markets Strategy

(65) 6882-8170 15 May 2026 J P M O R G A N

khoi.t.vu@jpmorgan.com

to outperform the market with a decent hit rate. (See Table 3-5 for Growth/Value/Low Vol

stocks). For further details on methodology, please see our ASEAN Equity Quantitative

Strategy note.

• Relaxation of short-selling regulations should improve liquidity. Thai stock

exchange announced on May 13 that the authorities will relax curbs on short selling and

high-frequency trading to bolster market activity. The current uptick rule (stocks can only

be shorted at higher prices than last trade) will be replaced by “zero-plus” uptick (shorting

price can be equal to or higher than the last trade). The exchange will also remove curbs

on specific stocks that are allowed for high-frequency trading. In our view, this aligns

with the broader market reforms in Thailand and will have a positive impact on market

liquidity.

• Foreign investors are selectively buying. Thailand saw ~US$153mn/714mn foreign

net buying MTD/YTD, however, most of the inflows concentrated in Energy (PTT,

PTTEP, TOP, BCP), and Telecom (ADVANC), while Banks are the largest funding

sources (total ~US$2bn outflows from banks stocks). Domestic funds are sitting on

relatively low cash levels (7.5% vs. average 9% in the last two years). Local managers

are moving to a more defensive allocation with increased weightings in Healthcare, Food

& Beverages, Telecom, Energy and Utilities.

Figure 1: Thailand QMI - signaling a turn to late-cycle as pressures building Figure 2: Headline inflation might reach central bank target over the next

up on macro environment few months

%y/y

4 1

3 0.9

2 0.8

0.7

0.6

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