Optimism Grows for Economic Recovery with Potential Third Shinawatra Premiership
PUBLISHED: 23 Aug 2024 at 16:56
Market analysts are increasingly optimistic about a recovery in one of the world’s struggling stock markets, driven by decreasing political uncertainty in Thailand and recent economic proposals aimed at boosting growth.
The Stock Exchange of Thailand reported its best week since early 2021, closing with a 4% increase after former Prime Minister Thaksin Shinawatra presented his economic vision to 1,400 business leaders, now under the leadership of his daughter, Paetongtarn Shinawatra.
The SET index rose 13.84 points this past week, ending at 1,354.87, marking a significant uptick from 1,303.00 the previous week, fueled by a healthy daily turnover of 62.5 billion baht. This increase surpasses the previous largest weekly gain of 1.6% recorded in mid-July.
The index experienced a positive trend following Ms. Paetongtarn’s election as Prime Minister, with proposals for debt restructuring and revisions to popular cash handout programs raising hopes for increased consumer spending.
Experts suggest the market is showing renewed interest in the potential advantages of a third Shinawatra premiership, particularly in light of the family’s historical commitment to rural development and commercial advancement. Recent initiatives, such as the digital wallet program, could present valuable investment opportunities.
Despite a challenging year characterized by political instability and disappointing tourism figures, the SET index has only fallen 4.4% since the beginning of 2024, though it remains 13% lower compared to this time last year, ranking among the poorest global performers.
In 2024, foreign investors have primarily been net sellers of Thai shares, with total sales reaching 128 billion baht as of Thursday.
Looking ahead, analysts are hopeful for continued market recovery. While macroeconomic challenges linger, decreasing uncertainties, light foreign investor positions, and forthcoming earnings may contribute to a sustained rebound in the near future, according to insights from industry analysts.
