Thai Stocks Poised for Five-Year Low on Political Upheaval

(Bloomberg) -- Thailand’s equity benchmark index fell Thursday, heading toward its lowest closing level since March 2020 after the government’s second-largest party quit the ruling coalition, piling further pressure on Prime Minister Paetongtarn Shinawatra.

The Stock Exchange of Thailand Index slipped as much as 2.4%, before paring some of its declines. The gauge has plunged about 23% this year, making it the worst performer among the world’s major markets. 

“The market sees knee-jerk selling on the back of rising political uncertainty, though the underlying developments actually point toward greater clarity ahead,” said Bob Tachasirinugune, head of Thailand equities at Citigroup Inc. “A reset would break the political deadlock that has paralyzed policymaking for over a year.”

Thailand’s stock market has faced a series of headwinds this year, with slower economic growth, looming US tariffs and elevated household debt among the concerns curbing sentiment. Global funds have already dumped a net $2.3 billion of Thai stocks in 2025, according to data complied by Bloomberg.

The Thai baht fell for a fifth session against the dollar and on track for its longest losing streak in more than seven weeks amid the rising political uncertainty. The currency was trading 0.7% weaker against the greenback, lagging all emerging-market peers.

“As with other cases in Thai political history, there will be a good buying opportunity,” said Alan Richardson, a senior portfolio manager at Samsung Asset Management Co. “Eventually a new government will be formed and the market will recover.”

READ: Thai Ruling Coalition on the Brink After PM’s Leaked Phone Call

--With assistance from Matthew Burgess and Hoi Yuet Woo.

(Adds analyst comments in third and last paragraphs, currency updates in fifth.)

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