Thai investor mood dips for first time in four months, politics weigh

[webfact]

Thai investor mood dips for first time in four months, politics weigh

By Satawasin Staporncharnchai and Orathai Sriring

 

FILE PHOTO: Thai baht notes are seen at a Kasikornbank in Bangkok, Thailand, May 12, 2016. REUTERS/Athit Perawongmetha

 

BANGKOK (Reuters) - Investor confidence in Thailand's capital markets over the next three months dropped for the first time in four months, unsettled by recent anti-government protests, a capital market association said on Thursday.

 

The risk coming from political turbulence is adding to pressure on the government as policy makers struggle to revive an economy expected to shrink by a record amount as the coronavirus pandemic upends tourism and consumption.

 

The Federation of Thai Capital Market Organisations said its July survey showed the investor confidence index fell to 85.26 from 101.19 in the previous month.

 

"The main reason was politics. It's the first time in months that political factors took the spotlight and played a role in investment," the federation's chairman, Paiboon Nalinthrangkurn, told a briefing.

 

Demonstrators have called for the removal of the government of Prime Minister Prayuth Chan-ocha and amendments to the constitution.

 

The Thai stock index <.SETI> has fallen by 15% so far this year, with foreign investors dumping 231 billion baht ($7.44 billion) of shares.

 

Investors remained concerned about the economy and the earnings of listed companies, but they hoped a new government economic team would help restore confidence, Paiboon said.

 

"From now on, it will depend on the new team and whether they will have policies to build market confidence," he said.

 

In a cabinet shake-up, banking executive Predee Daochai was picked as finance minister and given the tough task of pulling Southeast Asia's second-largest economy out of a deep slump.

 

The finance ministry expects the economy to shrink 8.5% this year, although the government has introduced stimulus measures, including a 1.9 trillion baht package, in a bid to mitigate the outbreak impact.

 

($1 = 31.03 baht)

 

(Reporting by Satawasin Staporncharnchai and Orathai Sriring; Editing by Ed Davies)

 

-- © Copyright Reuters 2020-08-13

 

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[hotchilli]

17 hours ago, webfact said:

In a cabinet shake-up, banking executive Predee Daochai was picked as finance minister and given the tough task of pulling Southeast Asia's second-largest economy out of a deep slump.

As long as he can do as he thinks fit, if under a certain influence it will be more of the same.