Thai bank stocks rally broadly KBANK and BBL benefit from rate-hike trend as funds rotate into value stocks

Bank sector overview on the morning of July 2, 2026

On the morning of July 2, 2026, all 11 bank stocks rose. KBANK gained 5.05%, and BBL gained 4.72%. Brokerages said buying flowed into value stocks, supported by expectations that global interest rates are entering an uptrend, while the first reading passage of the 2570 annual budget draft boosted confidence in the economy and bank earnings in the second half of the year.

Key summary

• All 11 bank stocks rose, with KBANK leading at 5.05% and BBL up 4.72%.
• Analysts said the rally came from investors shifting money from growth stocks to value stocks, with banks directly benefiting.
• The key driver was market expectations that the rate cycle is entering an upward phase, with signals from the Federal Reserve favorable for bank stocks.
• Domestic tailwind: the first reading passage of the 2570 annual budget draft helped lift confidence in the economy and government spending in the second half of the year.

Strong movers and early-session trend

Thai market conditions on the morning of July 2, 2026: bank stocks rose across the board, led by KBANK and BBL.

KBANK rose 5.05%, up THB 11.00 to THB 229.00.

BBL rose 4.72%, up THB 8.50 to THB 188.50.

CREDIT rose 4.55%, up THB 1.00 to THB 23.00.

TTB rose 4.07%, up THB 0.10 to THB 2.56.

KTB rose 3.95%, up THB 1.50 to THB 39.50.

BAY rose 3.59%, up THB 1.50 to THB 43.25.

SCB rose 3.05%, up THB 4.50 to THB 152.00.

LHFG rose 1.71%, up THB 0.02 to THB 1.19.

TISCO rose 1.69%, up THB 2.00 to THB 120.50.

KKP rose 1.52%, up THB 1.50 to THB 100.50.

TCAP rose 1.49%, up THB 1.00 to THB 68.00.

Why funds are rotating into value stocks and supporting bank shares

The rise in bank shares reflects buying returning to large-cap stocks, as investors increase holdings in value stocks, supported by both domestic and overseas factors.

Overseas, the market's positive reaction to the Fed's stance is being seen as a signal that rates are entering an upward cycle, prompting funds to shift from growth stocks, especially technology and electronics, into value stocks. Banks are one of the main beneficiaries.

Domestically, the first reading passage of the 2570 spending budget bill, worth THB 3.788 trillion, has helped strengthen confidence in Thailand's economic outlook and government spending in the second half of the year.

In addition, second-quarter earnings in the banking sector are expected to mark the year's low point, with a gradual recovery in the second half as net interest margin (NIM) is expected to improve with the rate cycle.

Strategy: focus on large-cap banks benefiting from higher rates

From an investment strategy perspective, it is recommended to increase exposure to large-cap bank stocks, which have solid financial positions and direct exposure to the rate trend. Key names include KTB, KBANK, and BBL.