Thailand's Stock Market Faces Decline Amid Political Uncertainty

Thailand's Stock Exchange continues to face challenges, with the SET Index closing November at 1,256.69 points, down 4% from October. The decline has been attributed to various factors, including a disappointing third-quarter GDP growth of 1.2%, which fell short of expectations.

The ongoing political uncertainty, particularly the potential early dissolution of parliament announced by Prime Minister Anutin Charnvirakul, has further rattled market confidence. Analysts suggest that this dissolution could complicate the management of the Thai-Cambodia border conflict and disrupt government spending, which could lead to a caretaker government lacking in policy continuity.

The announcement has raised concerns among investors about the future of economic stimulus measures like the Thailand Individual Savings Account scheme. With average daily turnover dropping 13% to 33.8 billion baht, market participants are increasingly anticipating a potential interest rate cut by the Bank of Thailand to support the economy amid these uncertainties.

Despite the current downturn, some analysts believe the market may present attractive investment opportunities, particularly in specific sectors, as domestic consumption is expected to rise during the holiday season.