Bangkok: Bualuang Securities has projected that the Thai stock index (SET) will reach 1,700 points by the end of this year, buoyed by expected net foreign buying amounting to 160 billion baht.

According to Thai News Agency, the firm attributes this optimistic forecast to several government initiatives, such as the "Savings Plus" bond program and the Thailand Individual Savings Account (TISA), which are anticipated to bolster capital inflows. Bualuang Securities advocates a selective buying strategy, emphasizing stocks with robust fundamentals and growth potential in sectors like power plants, banking, electronics, tourism, and food for the latter half of the year.

Mr. Piriyapol Kongvanich, Director of Investment Analysis for Wealth Management at Bualuang Securities Public Company Limited, highlighted during a presentation at the 2026 Advanced Economic Journalists Development Program that the Thai stock market is currently seen as a "global safe haven." He noted that the market's structure, which includes high-dividend-yielding and financially strong sectors such as energy, petrochemical, and banking, makes it appealing to foreign investors amid global political uncertainties. Despite pressures from rising energy costs, the market's structure provides resilience, with energy and banking stocks remaining attractive to investors.

Government measures like the "Savings Plus" bonds and the TISA project are expected to support the capital market, especially benefiting high-dividend stocks in sectors like banking and telecommunications. The SET Index's upward trajectory is anticipated to continue, supported by foreign investors, who are already net buyers of 70 billion baht this year. The market is also buoyed by growing earnings from listed companies, with an expected earnings per share (EPS) of 100 baht driven by the energy and petrochemical sectors.

However, the recovery is predicted to be uneven across industries, suggesting a K-shaped market recovery. Bualuang Securities recommends focusing on stocks with strong fundamentals and growth potential. Prominent sectors include power plants, electronics, banking, tourism, and food. Notable companies in these sectors are GULF, GPSC, KCE, KBANK, ERW, and CBG, each expected to benefit from industry-specific trends and recoveries.

Mr. Sermsak Wongsitichok, Assistant Managing Director of the Financial Instruments Trading Department at Bualuang Securities, advised that investors with a higher risk tolerance should allocate about 60-70% of their portfolios to stocks, split between 30% Thai stocks and 70% foreign stocks. The remaining 30-40% should be invested in bonds, focusing primarily on Thai bonds, with some allocation to foreign bonds.