Thailand’s SET Index plunged more than 20 points or 1.44% after the opening bell on Monday as concerns over political issues that new policies introduced by the new government could pressure operations of big corporations.
The main bourse of Thailand’s stock market dropped 22.06 points or 1.46% to 1,492.83 points not long after the opening bell, breaking the crucial 1,500 resistance level. Investors were worried that new policies such as lowering feed-in tariffs could diminish profits of power producers in Thailand, which are big contributors in the Thai market. Meanwhile, an instant minimum wage hike could raise costs to manufacturers and might force some businesses to relocate.
SET Index has been Asia’s worst-performing stock market this year amid huge outflow since the election date on May 14, 2023. Analysts noted that the selloff may continue until there is clarity on the new leadership.
According to data compiled by Bloomberg, investors pulled off US$513 million from the bond market last week, which was the first week coming out of the election day on Sunday. Local equities market also saw US$312 million of outflow as well.