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The Thai stock market is expected to fall to a five-year low due to political turmoil.
Gate News bot reported that, according to Bloomberg, Thailand's stock market Benchmark index fell on Thursday, nearing its lowest closing level since March 2020. This was after Thailand's second-largest party withdrew from the ruling coalition, adding further pressure on Prime Minister Prayuth Chan-o-cha.
The Thailand Stock Exchange Index fell by 2.4% at one point, before recovering slightly. The index has fallen by about 23% this year, making it the worst performer among major global stock markets.
Bob Tachasirinugune, head of Thai equities at Citigroup, stated: "Due to increased political uncertainty, the market has seen instinctive selling, but the potential developments actually indicate that the future situation will become clearer. The restart of policies will break the political deadlock that has troubled policy-making for more than a year."
This year, the Thai stock market is facing a series of obstacles, with concerns about slowing economic growth, imminent U.S. tariffs, and rising household debt dampening market sentiment. According to data compiled by Bloomberg, global funds have net sold $2.3 billion of Thai stocks by 2025.