As of 2:13 PM, the SET Index stood at 1,107.09 points, up 17.53 points or 1.61%, with an intraday high of 1,107.89 and a low of 1,086.56, totaling 22.91 billion baht in trading value.
The market rallied more than 15 points after the Constitutional Court accepted a petition and issued a significant order related to the prime minister’s status. The court ruled that Prime Minister Paetongtarn Shinawatra must temporarily suspend her duties, effective July 1, 2025, pending the court’s final decision on the case.
The Constitutional Court unanimously (9-0) admitted the petition filed by a senator regarding the leaked audio clip of the PM with Cambodian Senate President Samdech Hun Sen and, by a 7-2 vote, ordered Paetongtarn to step aside temporarily. During her suspension, Deputy Prime Minister Phumtham Wechayachai will serve as interim Prime Minister.
Tisco Securities considers the court’s decision broadly in line with market expectations. The brokerage does not anticipate a significant negative impact on the SET Index in the immediate term. However, lingering political uncertainty, including ongoing cases, the crucial budget bill, and potential street protests, could continue to exert pressure on market sentiment for the next one to two months until a final court ruling is reached.
In terms of investment strategy, the analyst highlighting stocks with strong second-quarter earnings and healthy dividends—such as ADVANC, BAM, and PRM—as well as shares with limited sensitivity to domestic politics, including power producers, hospitals, and export-driven companies like GULF, HANA, and PR9.
Therdsak Thaveeteeratham, Executive Vice President from the Research Division from Asia Plus Securities noted that the situation increases political risk and uncertainty, especially regarding the legal distinctions of the position used for the caretaker PM with different legal scopes of authority. A key concern is whether the acting prime minister has the authority to dissolve Parliament, a factor that could heavily impact the market.
Even though Thai equities are considered highly undervalued from a valuation standpoint, the escalating uncertainties have deterred buying pressure, suggesting the SET will remain under pressure for some time.
The brokerage firm also stressed that despite the situation, the House of Representatives can still function normally, especially concerning legislation and the 2026 budget, as the court’s current proceedings are focused only on the prime minister’s position. Government continuity is expected, with the First Deputy Prime Minister likely stepping in until the court reaches a final decision.
Given the uncertain environment, the analyst recommends a cautious, wait-and-see approach to investing, as heightened risks could challenge the SET’s current support level at 1,050 points.
