Early dissolution seen rattling bourse

Analysts said that while Thai and foreign investors have expected an early dissolution of parliament, Thursday's announcement by Prime Minister Anutin Charnvirakul adds a short-term negative sentiment towards the stock market as it creates uncertainty in regard to policy continuity.

- NAREERAT WIRIYAPONG

“The early parliament dissolution could be negative to the market in the short-term. First, it could make managing the Thai-Cambodia border conflict more difficult as a caretaker government would be in place during the transition to the election,’ said Rakpong Chaisuparakul, senior vice-president at KGI Securities (Thailand).

“The dissolution of parliament came sooner than had been agreed upon in the memorandum of agreement [MoA] that planned for a dissolution in late January 2026. Based on the constitution requiring the election to be held within 60 days of the dissolution, the most likely poll date, in our view, is Sunday, Feb 8, 2026.”

In addition, early dissolution raises uncertainty as to whether the caretaker government can approve much-awaited consumption stimulus such as the second phase of the “Khon La Khrueng Plus” co-payment scheme, he added.

Kitpon Praipaisarnkit, vice-president of UOB Kay Hian Securities Thailand, said the biggest concern for the Thai stock market is whether the recently-announced tax deductions of up to 800,000 baht under the Thailand Individual Savings Account (TISA) scheme would be continued.