Energy Shares Rise as Thai Body Poll Seek Court Ruling on Pita Election Rule Breach

In the morning session of trading on Wednesday, shares of Thai energy companies climbed on reports that the Election Commission will seek a court’s ruling on whether prime minister candidate Pita Limjaroenrat should be disqualified for an alleged breach of election regulation.

The share price of Gulf Energy Development Pcl. (SET: GULF) rose THB2.00/share, or 4.40%, to THB47.50/share, with a trading value of THB1,469 million.

The share price of Global Power Synergy Pcl. (SET: GPSC) rose THB1.75/share, or 3.38%, to THB53.50/share, with a trading value of THB465 million.

The share price of B.Grimm Power Pcl. (SET: BGRIM) rose THB1.50/share, or 4.38%, to THB35.75/share, with a trading value of THB359 million.

The share price of Gunkul Engineering Pcl. (SET: GUNKUL) rose THB0.04/share, or 1.32%, to THB3.08/share, with a trading value of THB77 million.

The Election Commission of Thailand decided on Wednesday to refer to the Constitutional Court for ruling on whether Move Forward Party leader and prime ministerial candidate Pita Limjaroenrat should be disqualified as a representative due to a shareholding dispute.

According to reports, the election board also asked that Pita be temporarily suspended from his parliamentary position awaiting the outcome of the court case.

This referral occurs just one day before Pita challenges the office of prime minister in the two houses of parliament. To create the next government, he has the support of eight parties in a coalition.

Yuanta Securities sees two possible future outcomes in Thai politics: 1) The Pheu Thai Party and the Move Forward Party will continue their cooperation, but the PM candidate will change to Pheu Thai.

2) The Pheu Thai Party would create a coalition government with the Bhumjaithai Party and the Palang Pracharath Party.

The first scenario will be favorable for the SET Index, as there will be little effect from the public. 

But before that, investors should watch to see if the Constitutional Court would move forward with the case.