Border standoff hits stocks

Cambodian dispute drags down shares

- NUNTAWUN POLKUAMDEE

The border confrontation between Thailand and Cambodia has caused investor jitters across regional bourses, with the Stock Exchange of Thailand (SET) index dropping by 4.8% since May 15.

Border issues affected cross-border commerce between the two countries and dented confidence in sectors exposed to Cambodia, including beverages, food, cinemas and hospitality, said Krungsri Capital Securities (KCS).

Companies such as Carabao Group (CBG), which derives 10% of sales from Cambodia, and Osotspa (OSP), with 7% of sales from Cambodia, saw sentiment dip.

While CBG has contingency plans to ship products via sea routes if border closures persist, analysts warn that further escalation could lead to more pronounced impacts.

Hospitals were less affected as Cambodian patients contribute less than 5% of revenue for most Thai hospitals.

Medical tourism from Cambodia is largely conducted by air, and exemptions for cross-border patients remain in place, mitigating the risk of severe disruption.