The reduction marks a reversal of the brokerage’s upgrade of the market just three months ago given the re-emergence of risks that drove a sell-off early in the year.
UBS Group strategists downgraded Thai stocks to neutral from overweight, citing recent political uncertainty which could impact policy direction and investor sentiment.
Inflows into additional schemes for the Thai ESG fund have been underwhelming, showing weak sentiment toward equities, while recovery in tourism from China has been weaker than expected, strategists including Sunil Tirumalai wrote in a note on Monday.
