Interest rate rise expectations drive Thai bank stocks higher: KBANK, BBL lead gains

All bank stocks up in early trade: KBANK, BBL lead

• On February 7 (2026 Buddhist year), all 11 bank stocks rose in early trading, KBANK up 5.05%, BBL up 4.72%.
• Other gainers include CREDIT (+4.55%), TTB (+4.07%), KTB (+3.95%), BAY (+3.59%), SCB (+3.05%), LHFG (+1.71%), TISCO (+1.69%), KKP (+1.52%), TCAP (+1.49%).

Key logic: Rotation from Growth to Value, interest rate cycle benefits banks

Securities analysts note that today's bank stock strength is related to rotation from growth stocks to value stocks, with banks being a direct beneficiary.

Overseas, positive interpretation of signals from the Fed is seen as indicating an upward phase in the interest rate cycle. This drives capital rotation between sectors, especially from previously weak tech and electronics stocks toward value stocks, with banks as major beneficiaries.

Domestically, the FY2027 (2570) budget bill passed the first reading, boosting market confidence in Thailand's economic outlook and public spending plans for the second half.

Earnings outlook and investment strategy: focus on large banks and NIM direction

Analysts also note that the bank sector's Q2 2026 performance is expected to be near the year's low, with gradual recovery in the second half. Main support comes from NIM expected to return to an upward trend, consistent with the interest rate cycle.

Investment strategy: allocate to large banks with sound fundamentals that directly benefit from the rate trend, such as KTB, KBANK, and BBL.