Foreign investors are fleeing Thai assets, fearful of political turmoil ahead as the junta prevents free and fair elections. https://t.co/1Cn7hsObSE— Andrew MacGregor Marshall (@zenjournalist) February 20, 2019
Foreign investors flee Thai shares ahead of March election
By Orathai Sriring, Satawasin Staporncharnchai
Reuters
BANGKOK, Feb 20 (Reuters) - Foreign investors have dumped $338 million in Thai equities in seven straight sessions, the longest losing streak in more than two months, as worries about potential political instability grip the nation ahead of elections in March.
Thailand’s main stock index has lost about 175 billion baht ($5.63 billion) of its market value since the surprise, short-lived entry of the sister of King Maha Vajiralongkorn into politics threw the election into turmoil.
On Feb. 8, Princess Ubolratana Rajakanya Sirivadhana Barnavadi, 67, stunned the nation with her candidacy for prime minister for the party that is loyal to ousted ex-premier Thaksin Shinawatra.
But the king blocked her bid, with the party facing dissolution ahead of the election on March 24, the first since a 2014 military coup.
Since then, foreign investors have sold a net 10.5 billion baht of Thai shares. In November, foreign net selling was 9.3 billion baht over an eight-session period.
Until recently, overseas inventors had bought a net 8.3 billion of Thai shares between Jan. 1 and Feb. 7.
After Feb. 7, things turned down with foreign sales of 2.3 billion for the year-to-date. In 2018, foreign net selling was nearly 300 billion baht.
Investors may return after the election, fund managers say.
“That’s because of political uncertainty. The political heat is still here,” said Prapas Tonpibulsak, chief investment office of Talis Asset Management.
