Deputy Finance Minister Julapun Amornvivat addressed the recent downturn in Thailand’s stock market which has dropped to levels last seen in November 2020, attributing it to political uncertainties.
He expressed confidence that this situation is likely to be temporary, emphasizing the importance of investor confidence. Amornvivat noted that several significant political factors are at play, contributing to the market’s current state.
Thailand’s SET Index pared some losses in the late afternoon after dropping as much as 1.37% right after the opening in the afternoon. The main index is currently trading at 1,295.94 points, down 0.81%.
This marked an overall 8% decrease year-to-date, making it the worst-performing market in Asia.
The decline occurred as traders adopted a cautious approach ahead of crucial court rulings on political cases.
The Constitutional Court of Thailand is set to deliver judgements on significant political cases involving the lese majeste charges against former PM Thaksin Shinawatra, the ousting of PM Srettha Thavisin, and the potential dissolution of the Move Forward Party.
However, Amornvivat remains optimistic that the political landscape will improve in the coming days. He also mentioned that the finance ministry is actively developing new mechanisms to enhance investor confidence amid the current circumstances.
