Tisco sees Thai stocks as attractive, with Q3 earnings as the test of recovery

Money & Banking··THUS·Read original
2▲8 ▼0Impact / 5
Summary · why it matters

Tisco Securities said Thai stocks are regaining their appeal as the economy enters a recovery cycle. Abhichart Phubanjerdkul, senior director of the strategic analysis department at Tisco Securities, said on October 5, 2026, that third-quarter 2026 earnings, which will be reported gradually from mid-October, will be a key test of whether the recovery in listed-company profits is real, after the second quarter of 2026 set record highs for revenue, net profit, and earnings before interest, taxes, depreciation, and amortization. The Thai stock market index has a correlation of 0.88 with listed-company profits. On valuation, excluding DELTA, the Thai market trades at a forward 12-month price-to-earnings ratio of only 11.8 times, while about 60% of Thai listed companies trade below book value and the average dividend yield is about 3.9%, above the regional market average of roughly 3.4%. For investment strategy, the top picks for October are BH, DELTA, KBANK, PTTEP, SJWD, TRUE, and TVO, with support levels estimated at 1,560-1,580 points and 1,540 points, and resistance at 1,610 points, 1,630 points, and 1,660 points. NVDA80 and ZIJIN80 were also selected as options for overseas equity investment through depositary receipts for October. At the same time, the view is that the U.S. midterm elections on November 3 could be a positive factor for global financial markets, as roughly 90 years of history show U.S. stocks have typically risen an average of 7.2% after midterm elections. There is also a long-term boost from the 2026 power generation development plan, which is expected to involve investment worth as much as 2 trillion to 3 trillion baht, potentially adding at least 0.5% per year to gross domestic product growth.

Impact on assets 9

Health Care▲
Bumrungrad Hospital PCL
BH
▲ PositiveCapitalrelevance

Named as one of Tisco Securities' top picks for October, implying expected outperformance.

Electrification & Mobility▲
Financials▲
Energy▲
Industrials▲
Cloud & Digital Infrastructure▲
Consumer Staples▲
Artificial Intelligence▲
Others▲