Yossakorn Follett, Chief Executive Officer of XSpring Asset Management, or XSpring AM, sees the personal savings account scheme, TISA, and the idea of reviving an infrastructure fund along the lines of the Thailand Future Fund, or TFFIF, to raise capital as key tools for building a long-term investment base for the Thai capital market. TISA should allow investment across a wide range of assets, not limited to stocks or bonds, similar to the 401(k) system in the United States, even though the format and mechanisms would not be entirely the same. And although the launch of the TISA measure has been pushed back to next year, if it is genuinely driven forward it will help draw more long-term investment money into the Thai capital market. As for the TFFIF concept, it would use state assets that have already been built and generate income, such as roads or expressways, as underlying assets for investment. Meanwhile, XSpring AM has raised its weighting for Thai equities from below normal, or Underweight, back to normal, or Neutral, taking the view that the index around 1,580 to 1,600 points is neither too expensive nor too cheap compared with its historical average, and that an average dividend yield of 3 to 3.5 percent a year still supports investment. For its fourth-quarter 2026 strategy, the company is overweight consumer stocks that benefit from the government's economic stimulus measures, as well as semiconductors and technology. As for banking stocks, although they still stand out for dividends, investment must be selective by individual company, and the impact of flooding, which could affect credit quality in third-quarter 2026 earnings, must be monitored. Pressures to watch include selling from existing long-term equity funds whose holding conditions have matured; if the index rises to around 1,620 to 1,630 points, gradual profit-taking may be seen, along with the reduced weighting of the Thai stock market in the global equity index, because other countries' markets have grown faster in market value, forcing foreign index-tracking funds to cut their holdings of Thai stocks accordingly. XSpring AM estimates the SET index will close 2026 at around 1,600 points, and if there are no severe shocks beyond expectations, there is a chance of seeing the index touch 1,700 points in 2027.
XSpring AM upgrades Thai equities to Neutral and outlines overweight Q4 2026 strategy, a valuation/allocation call.
