CEO Morning Brief

Thai Stocks Decline to Five-year Low on Political Upheaval

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Publish date: Fri, 20 Jun 2025, 11:26 AM
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(June 19): Thailand’s equity benchmark index closed at its lowest level since March 2020, after the government’s second-largest party quit the ruling coalition, piling further pressure on Prime Minister Paetongtarn Shinawatra.

The Stock Exchange of Thailand Index fell 2.4%, marking its longest losing streak since February in a sixth straight day of decline. The gauge has plunged nearly 24% this year, making it the worst performer among the world’s major markets.

“The market sees knee-jerk selling on the back of rising political uncertainty, though the underlying developments actually point toward greater clarity ahead,” said Bob Tachasirinugune, head of Thailand equities at Citigroup Inc. “A reset would break the political deadlock that has paralyzed policymaking for over a year.”

Thailand’s stock market has faced a series of headwinds this year, with slower economic growth, looming US tariffs and elevated household debt among the concerns curbing sentiment. Global funds have already dumped a net US$2.3 billion (RM9.8 billion) of Thai stocks in 2025, according to data compiled by Bloomberg.

The Thai baht fell for a fifth session against the dollar and on track for its longest losing streak in more than seven weeks amid the rising political uncertainty. The currency was trading 0.4% weaker against the greenback.

“As with other cases in Thai political history, there will be a good buying opportunity,” said Alan Richardson, a senior portfolio manager at Samsung Asset Management Co. “Eventually a new government will be formed and the market will recover.”

Source: TheEdge - 20 Jun 2025

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