Despite initial optimism that the General Election could reverse the “sell in May” phenomenon, the recent poll sent the Stock Exchange of Thailand (SET) index into a tailspin, dipping 3% the first week after the election. Political uncertainties have triggered an outflow of funds, worsening the situation for Asia’s worst-performing bourse this year. The market capitalisation of the SET has contracted 132 billion baht or 1.7% since the May 14 poll.
Investors have been selling shares of big-cap stocks amid concerns that the policies of the Move Forward Party (MFP), which won a majority of 152 seats, would affect listed companies’ capacity to generate profits. There are also concerns that an extended delay in forming a new coalition government could disrupt budget spending for fiscal 2024, which starts in October. Kavee Chukitkasem, head of research at PI…
