Strategy - Thailand: A bull market turning blue

BofA/Kiatnakin Phatra Thailand equity strategy. The EC has resolved to refer cases against 77 individuals over alleged Senate election fraud, with only 26 senators reportedly facing charges and no incumbent political officeholders involved; the short-term economic impact should be limited as the FY2027 budget is expected to pass the Senate this week and the government retains a strong parliamentary majority of 300+ MPs. Post-election easing of policy uncertainty drove ERP compression from 680bps in 2025 to 500bps currently, lifting the SET's P/E to this year's high of 15.8x. We expect the Senate case to be largely a non-event and see limited scope for further ERP compression;