Bourse gains to be limited amid ongoing turbulence

The new prime minister, to be decided on through a vote later this week, will struggle to prop up the stock market as the new coalition would be short-lived and a weak mandate would restrict its ability to deploy new spending effectively, analysts say.

- NAREERAT WIRIYAPONG NUNTAWUN POLKUAMDEE

Political volatility following the Constitutional Court's decision to disqualify Paethongtarn Shinawatra from the premiership due to an ethics violation on Friday will cap the Stock Exchange of Thailand’s gains in the near term.

The possibility is high that a minority government will be formed, and fresh elections will be called by December at the earliest, the analysts added.

Chak Reungsinpinya, managing director and head of research at Maybank Securities (Thailand), said that if either Anutin Charnvirakul from the Bhumjaithai Party or Chaikasem Nitisiri from the ruling Pheu Thai Party is nominated to become the next premier via the vote, they will require support from the People’s Party, which would mean accepting conditions for an early election.