Analysts concerned delay could hamper GDP, stocks

Stock market analysts have expressed unease about the post-election political situation, saying a delay in the formation of a new government would affect the country’s GDP and encourage foreign investors to continue dumping Thai shares.

Sorrabhol Virametekul, senior vice-president of Kasikorn Securities, said it is uncertain whether the Move Forward Party (MFP) can mobilise enough support from other parties and senators to reach the 376 votes required for MFP leader Pita Limcharoenrat to become the country’s next prime minister. If the MFP is unable to mobilise sufficient support, the Pheu Thai Party, which received the second-most number of votes in the May 14 election, would take the lead in forming a government, said Mr Sorrabhol.

Since May 15, foreigners have sold Thai stocks and bonds worth a combined 25 billion baht amid uncertainty surrounding Thai…