The Thai stock market dropped 1% after the Constitutional Court announced a verdict to oust Partongtarn Shinawatra as prime minister, leading to political vacuum in the country.
On Friday, the Constitutional Court of Thailand reached a 6-3 verdict in the high-profile ethics case against Paetongtarn Shinawatra, ruling to dismiss her from the post of prime minister and dissolve the entire cabinet after reviewing an audio recording of a conversation with Cambodia’s Hun Sen.
Phillip Securities Thailand commented that during the forming of a new cabinet, the Thai stock market may become fragile, with the SET Index possibly dropping to 1,180 – 1,200 points. The recovery is expected to begin once the market sees a glimpse of who will become the next prime minister. A clear timeline for the formation of a new government or election could further lower the market’s concern and buoy the stock market.
As for investment strategy before a new government is formed, the strategist recommended the investor to focus on stocks that connect to the international market, such as:
- Stocks with revenue from overseas: MINT, IVL, PTTGC, SCC, and SCGP
- Stocks that connected to commodities price, especially crude oil price and gross refining margin: BCP, PTTEP, SPRC, and TOP
