Stock Markets March 19, 2026

Foreign Demand for Thai Stocks Peaks as Political Calm and Oil Prices Shape Outlook

Jefferies Asia Forum 2026 delegates cite low valuations, dividends and Jump+ program as draws amid concerns over rising energy costs

By Leila Farooq BH
Foreign Demand for Thai Stocks Peaks as Political Calm and Oil Prices Shape Outlook
BH

Feedback from the Jefferies Asia Forum 2026 indicates foreign investor interest in Thailand’s equity market has strengthened to its highest level in recent years. Delegates pointed to improved political stability after elections, attractive valuations and high dividend yields as primary attractions, while rising oil prices and energy import dependence were identified as the main risks to market performance.

Key Points

  • Foreign investor interest in Thailand at multi-year highs following improved political stability; investors remain watchful for government-led economic improvements (impacts: equities, sovereign outlook).
  • Asset relocation from developed markets, notably the United States, toward emerging markets including Thailand due to attractive valuations (impacts: capital flows, equity markets).
  • Investors cite low valuations, high dividend yields among large-caps, and the SET Jump+ program as primary attractions; banking and healthcare were focal sectors at the forum (impacts: financials, healthcare stocks).

Feedback gathered at the Jefferies Asia Forum 2026 suggests foreign investor interest in Thailand’s stock market has climbed to the highest levels seen in recent years. The forum, which included presentations by six leading Thai companies and a series of institutional investor discussions focused on the Stock Exchange of Thailand outlook, highlighted a mix of optimism and caution among market participants.

Political stability a key attractor

Delegates repeatedly cited the improved political situation following recent elections as the principal factor behind growing demand for Thai equities. Investors made clear, however, that while the political backdrop has become more supportive, many will await concrete signs that the new government can translate stability into enhanced economic potential before committing additional capital.

Capital repositioning from developed markets

Another recurring theme at the forum was the relocation of assets from developed economies, particularly the United States, toward emerging markets including Thailand. Participants pointed to relatively attractive local valuations as a catalyst for potential flows, suggesting Thailand is benefiting from a broader reassessment of risk and return across global portfolios.

What investors see in Thailand

Institutional investors at the forum identified three primary selling points for the Thai market: low valuations, comparatively high dividend yields among several large-cap names, and the possible positive influence of the Stock Exchange of Thailand’s Jump+ program. Investors noted that high dividend yields for some large-cap stocks are at least partly a function of market de-rating in recent years, and several asked for more details on the Jump+ program to determine whether it could produce outcomes similar to Value-Up initiatives seen elsewhere.

Rising oil prices and fiscal limits as the main downside

Participants singled out rising oil prices as the principal risk to Thailand’s market. Given the country’s substantial reliance on imported energy, investors expressed concern that Thailand could be more adversely affected than other nations. While the government is attempting to manage domestic energy prices, forum feedback highlighted limited fiscal room to sustain prolonged intervention. Several investors warned that once energy-driven inflation filters into the real economy, the market could suffer a meaningful setback.

Geopolitical hopes temper selling

Some investors said they are currently reluctant to liquidate positions in part because they hope the Middle East conflict will not escalate further and will subside, thereby normalizing any related economic effects. That expectation is contributing to a degree of investor patience in the near term.

Sector focus: banking and healthcare

Forum discussions centered on the banking sector, including how rising energy costs might influence interest rates and asset quality for lenders. The healthcare sector also drew notable attention, with several attendees highlighting potential implications for BH in particular.


Summary

At the Jefferies Asia Forum 2026, institutional attendees signaled heightened foreign interest in Thai equities driven by political stabilization, attractive valuations and dividend yields, and potential benefits from the SET’s Jump+ program. Rising oil prices, constrained fiscal capacity to control energy costs, and geopolitical uncertainty were highlighted as the main risks. Banking and healthcare were the sectors most discussed.

Risks

  • Rising oil prices present the primary downside risk, with Thailand especially vulnerable because of heavy dependence on imported energy - this could affect consumer prices, corporate margins and market sentiment (impacts: energy, consumer sector, overall market).
  • Limited fiscal capacity to sustain domestic energy price controls increases the risk that energy inflation could spill into the real economy, potentially weakening asset quality and growth (impacts: government finances, banking sector).
  • Geopolitical developments in the Middle East create uncertainty; while some investors expect the conflict to subside, any escalation could amplify market stress and investor hesitation (impacts: market sentiment, cross-border capital flows).

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