Krungsri Highlights Stocks to Reap Benefits as Thailand’s Inflation Trend Aligns With BOT’s Policy Stance

Krungsri Securities (KSS) has provided its latest analysis regarding Thailand’s June inflation data, highlighting a moderation in the Consumer Price Index (CPI) growth year-on-year. According to Krungsri, headline inflation for June stood at 2.42% year-on-year, easing from the previous month and coming in better than market expectations of 2.87%. Furthermore, core inflation, which excludes raw food and energy, was reported at 1.23% year-on-year—slightly above market expectations of 1.1%, and higher than the previous month’s figure of 0.92%. Krungsri interprets this data as confirmation that Thailand’s inflation has likely passed its peak. This development is seen as supportive of the Bank of Thailand’s (BOT) dovish monetary policy stance, either maintaining or further easing its policy rate, keeping the benchmark interest rate at 1% throughout 2026. The brokerage also notes that these inflation and interest rate trends are expected to have a positive impact on the SET Index. Unlike previous rallies that were concentrated in specific sectors, the current upswing is anticipated to be broader across different industry groups. Low interest rates are forecasted to benefit domestic consumption-related stocks, including firms involved in hire purchase such as KTC, MTC, and JMT, as well as retail giants like CPALL. Additionally, these conditions are expected to support investment-driven stocks, such as banking names like KBANK and KTB, construction companies such as STECON, PYLON, and INSET, electricity providers including GUNKUL and WHAUP, and industrial estate operators AMATA and WHA.