Thai shares experienced a six-month low on the 19th October as anti-government protests led to a knock in investor confidence in the country. The slump has put additional pressure on Thailand’s stock market as a direct result of its poor performance in 2020.
Anti-government protestors have been campaigning for the resignation of the country’s Prime Minister, Prayuth Chan-Ocha, as well as restrictions on the monarchy’s power in the country as the COVID-19 pandemic resulted in a significant blow to Thailand’s economy due to a decline in the tourist trade.
Stocks On-track To Continue Slide
Stocks in Bangkok have lost over 23% in 2020 so far and have dropped to their lowest level since mid-April. Analysts working for Phillip Securities Thailand said;
“As no signs of an end to domestic political protests are yet in sight, Thai stocks look to continue their downward bias.”
The political protests are expected to cause further harm to Thailand’s tourism sector and the foreign sale of Thai stocks are predicted to be much higher than normal as a result of political unrest.
Other Asian Stock Market Rises
Despite the fact that Thailand has experienced equity overflows of over $8.8 billion from January to August of this year, the majority of other Asian stock markets have risen as a result of the US’s new fiscal stimulus deal and China’s accelerated economic recovery.
On Friday, after the lower parliamentary house in the Philippines approved the country’s budget for 2021, stocks rose by 0.9%, which the government predicts will lead to economic recovery after their sharp downturn this year.
Malaysian stocks have also been shaken by political unrest over the past few weeks, but they have now risen by 0.7% after 3 days of continuous decline.
For more news and updates from the global financial sector and short term trading information, take a look at the rest of our blog here at Day Trading today.