BANGKOK, July 19 – Securities analysts agree that political uncertainty drags investment. Pointed out that the Pheu Thai Party has a greater chance of being a leader in forming a government than the Kao Klai Party.
Mr. Wichit Arayapisit, Investment Strategist, Research Department, Liberator Securities Mentioned that the political uncertainty had affected the capital market since the announcement of the election results. But it’s getting better. However, recently, the Constitutional Court accepted a petition filed by the Election Commission (ECT) to rule that Mr. Pita Limcharoenrat’s MPs’ membership Party leader and candidate for the Prime Minister of the Progressive Party Is it over? As a result of having a name for holding shares in ITV Co., Ltd., with the Constitutional Court having a majority vote of 7 to 2, ordering Mr. Phitha to stop performing as an MP from today (July 19) until the Constitutional Court has a ruling and the case The council did not nominate Mr. Phitha. in voting for Prime Minister Round 2
viewed that the incident was not beyond expectation due to the political situation after the election Acknowledging that the Progressive Party’s chances of becoming the government’s leader are quite difficult. By assessing that a possible alternative could be the Pheu Thai Party as the leader to form a government with the Progressive Party joining the government Or the Pheu Thai Party joins hands with the former ruling party Or is it a change of party poles and forming a government altogether? Then the party advanced to become the opposition which if it actually reaches the polarity reversal It is expected that in the next election there is a chance that the Progressive Party will take Lanslide. While if the Pheu Thai Party becomes the government and Mr. Srettha Thavisin becomes the Prime Minister The market seems to have a positive signal. Because Mr. Srettha’s name is recognized in the economy.
As for Mr. Soonthorn Thongthip, Senior Director of Securities Analysis Department, Kasikorn Securities, has a similar view that Uncertainty of the political situation may drag down investment. Private sector investment is expected to slow down until a new government has a clear policy. The 2024 budget, which starts on Oct. 1, 2023, will be postponed in accordance with the new government’s amendment. Investors are still concerned about the new government’s economic policies, such as the Common Wealth Policy. minimum wage increase and higher tax rates, etc.
In this regard, it is seen that there are 3 forms of coalition government that will occur: a coalition government led by the Progressive Party. But the chances are slim, the second form is a coalition government led by the Progressive Party. and progressed to become a ruling party that still has a chance and the third form, a polar opposite, a coalition government led by the Pheu Thai Party and the Kao Klai Party as the opposition. which if it comes out in this form And the Prime Minister’s vote may have the name of the Prime Minister from the Pheu Thai Party. or the original ruling party And may result in “down the road” occurs.-Thai News Agency
Source: Thai News Agency