In a span of three days, more than $3.85 billion has been erased from Thailand’s stock market as political risks heightened ahead of national elections.
The nation’s benchmark SET Index slid 1.3 percent in that period. In a twist, Thai Raksa Chart, the party linked to exiled former leader Thaksin Shinawatra, saw a bid to make Princess Ubolratana Rajakanya its prime ministerial candidate rapidly unravel Feb. 8 as her brother, King Maha Vajiralongkorn, publicly opposed the move. Activists petitioned the Election Commission about disbanding Thai Raksa Chart for violating election rules.
Uncertainty surrounding the Thai ballot will have an impact on equities, said Nader Naeimi, head of dynamic markets at AMP Capital Investors Ltd. in Sydney. Investors are bound to be involved in some profit taking after markets started the year by pricing in “a lot of good news around the Fed, around central-bank policy,” he explained.
Foreign investors have sold $71 million net in Thai stocks in the past two days, according to data compiled by Bloomberg. On Monday, the SET Index fell the most in almost a month, and stocks linked to Thaksin also had a wild ride: SC Asset Corp. and Praram 9 Hospital Pcl, both companies controlled by his family, slumped after rallying last week, while Intouch Holdings Pcl -- which Thaksin founded before selling the entity to Temasek Holdings Pte -- slipped almost 5 percent.
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