Thai stocks slump as anti-government protests add to uncertainty about the country’s economic health

Thailand’s Stock Exchange Ventures Into Cryptocurrency Trading
Investors are not happy with political developments in Thailand © Arno Maierbrugger

Thai stocks on October 19 dropped to a six-month low amid ongoing protests against the government of Prime Minister Chan-ocha as investors fear that the unrest will further hurt company earnings and delay an economic recovery.

The benchmark stock index SET slid two per cent to close at 1,208.75, its lowest level since April 16. It fell more than five per cent since October 14, when organisers began the latest round of demonstrations and flash mobs across Bangkok.

 “The stock market fears uncertainty from the anti-government protests, which will be prolonged and may lead to some violence,” Bloomberg News cited Vathan Jitsomnuk, a strategist at investment firm Country Group Securities in Bangkok.

“Defensive investors should wait for a clearer situation before buying shares again,” he added.

Protests demanding the resignation of Prime Minister Prayuth Chan-ocha and curbs on powers of the monarchy have compounded Thailand’s woes in recent months after the Covid-19 pandemic ravaged its tourism-reliant economy.

Deeper market correction ahead, say analysts

“In the short term, I think investors – local and foreign – will reduce their exposures to Thai equities, which could lead to a deeper market correction,” he said, warning of a extended sell-off if investors began to expect a prolonged political turmoil, Reuters quoted Poon Panichpibool, a market strategist at Krung Thai Bank, as saying.

Thailand has already suffered a record $8.8 billion in equity outflows over the first nine months of this year, stock exchange data shows.

Prakash Sakpal, senior Asia economist at Dutch bank ING, also highlighted risks to Thai assets from the uncertainty, according to Reuters.

“History shows how ugly such political outbursts in Thailand could get… As such, I think risky Thai assets might be a no-go zone until the political dust clears,” he said.



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Investors are not happy with political developments in Thailand © Arno Maierbrugger Thai stocks on October 19 dropped to a six-month low amid ongoing protests against the government of Prime Minister Chan-ocha as investors fear that the unrest will further hurt company earnings and delay an economic recovery. The benchmark stock index SET slid two per cent to close at 1,208.75, its lowest level since April 16. It fell more than five per cent since October 14, when organisers began the latest round of demonstrations and flash mobs across Bangkok.  “The stock market fears uncertainty from the anti-government protests, which...

Thailand’s Stock Exchange Ventures Into Cryptocurrency Trading
Investors are not happy with political developments in Thailand © Arno Maierbrugger

Thai stocks on October 19 dropped to a six-month low amid ongoing protests against the government of Prime Minister Chan-ocha as investors fear that the unrest will further hurt company earnings and delay an economic recovery.

The benchmark stock index SET slid two per cent to close at 1,208.75, its lowest level since April 16. It fell more than five per cent since October 14, when organisers began the latest round of demonstrations and flash mobs across Bangkok.

 “The stock market fears uncertainty from the anti-government protests, which will be prolonged and may lead to some violence,” Bloomberg News cited Vathan Jitsomnuk, a strategist at investment firm Country Group Securities in Bangkok.

“Defensive investors should wait for a clearer situation before buying shares again,” he added.

Protests demanding the resignation of Prime Minister Prayuth Chan-ocha and curbs on powers of the monarchy have compounded Thailand’s woes in recent months after the Covid-19 pandemic ravaged its tourism-reliant economy.

Deeper market correction ahead, say analysts

“In the short term, I think investors – local and foreign – will reduce their exposures to Thai equities, which could lead to a deeper market correction,” he said, warning of a extended sell-off if investors began to expect a prolonged political turmoil, Reuters quoted Poon Panichpibool, a market strategist at Krung Thai Bank, as saying.

Thailand has already suffered a record $8.8 billion in equity outflows over the first nine months of this year, stock exchange data shows.

Prakash Sakpal, senior Asia economist at Dutch bank ING, also highlighted risks to Thai assets from the uncertainty, according to Reuters.

“History shows how ugly such political outbursts in Thailand could get… As such, I think risky Thai assets might be a no-go zone until the political dust clears,” he said.



Support ASEAN news

Investvine has been a consistent voice in ASEAN news for more than a decade. From breaking news to exclusive interviews with key ASEAN leaders, we have brought you factual and engaging reports – the stories that matter, free of charge.

Like many news organisations, we are striving to survive in an age of reduced advertising and biased journalism. Our mission is to rise above today’s challenges and chart tomorrow’s world with clear, dependable reporting.

Support us now with a donation of your choosing. Your contribution will help us shine a light on important ASEAN stories, reach more people and lift the manifold voices of this dynamic, influential region.

$
Personal Info

Donation Total: $10.00

 

 

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