Thai markets experienced a decline on Thursday as concerns over political stability rose after the dismissal of the current prime minister.
The Thai baht, which has already depreciated by approximately 3% this year, saw a 0.1% drop, while stocks on the Stock Exchange of Thailand (SET) fell by 0.8%. Year-to-date, Thai stocks have plummeted by 9.4%, making it the worst-performing Asian stock market after a 15% decline last year.
Thailand’s Constitutional Court ousted Prime Minister Srettha Thavisin on Wednesday, citing “gross” ethics violations related to the appointment of a previously incarcerated minister. This development has heightened concerns about political instability and potential changes within the ruling coalition.
The abrupt removal of the prime minister, who served less than a year, has deepened political uncertainties in Thailand, influencing investor confidence negatively, according to analysts at DBS.
In the global arena, attention shifted to the U.S. inflation report revealing moderate growth in consumer prices for July, reinforcing expectations of an imminent interest rate cut by the Federal Reserve.
