Thai bank stocks surge across the board: KBANK and BBL lead on rate hikes and 2027 budget support

Bank stocks jump across the board, with KBANK up 5.05% and BBL up 4.72%. Brokers said money flowed into value stocks, helped by expectations that global interest rates are entering an upcycle, while the House passing the 2027 budget bill in its first reading also boosted confidence in the economic and banking outlook for the second half of the year.

Key points

• All 11 bank stocks rose in the morning of July 2, 2026, with KBANK up 5.05% and BBL up 4.72%.
• Asia Securities analysts said this rally came from money rotating out of growth stocks into value stocks, with banks benefiting directly.
• The key factor is market expectations that the interest-rate cycle will move into an uptrend, following signals from the U.S. Federal Reserve, which is favorable for banks.
• A positive domestic factor came from the 2027 budget bill, worth THB 3.788 trillion, passing its first reading, boosting confidence in the economy and public spending in the second half.

Thai stock market performance on the morning of July 2, 2026 showed banks rising across the board. The leading stocks were:

KBANK up 5.05%, up THB 11.00, at THB 229.00
BBL up 4.72%, up THB 8.50, at THB 188.50
CREDIT up 4.55%, up THB 1.00, at THB 23.00
TTB up 4.07%, up THB 0.10, at THB 2.56
KTB up 3.95%, up THB 1.50, at THB 39.50
BAY up 3.59%, up THB 1.50, at THB 43.25
SCB up 3.05%, up THB 4.50, at THB 152.00
LHFG up 1.71%, up THB 0.02, at THB 1.19
TISCO up 1.69%, up THB 2.00, at THB 120.50
KKP up 1.52%, up THB 1.50, at THB 100.50
TCAP up 1.49%, up THB 1.00, at THB 68.00

First, the market reacted positively to the Fed's stance, which investors saw as a signal that rates are entering an upcycle. That drove money to rotate from growth stocks, especially tech and electronics, into value stocks, with banks among the biggest beneficiaries.

At the same time, the domestic backdrop was supported by the first reading of the 2027 budget bill, with a total value of THB 3.788 trillion, boosting confidence in Thailand's economic outlook and government spending in the second half of the year.

In addition, bank-sector profit in Q2 2026 is expected to be the year's low point, with earnings gradually recovering in the second half as net interest margins (NIM) are likely to improve with the rate cycle.

For the investment strategy, analysts recommend overweighting large banks, which have solid financial positions and benefit directly from interest-rate trends. Preferred names include KTB, KBANK and BBL.