Volatile day for Thai stocks after verdict to remove Srettha as PM

The index fell to 1,287 points as of 3.47pm, down 10.32 points or 0.80 per cent compared to yesterday’s close. Transactions, meanwhile, totalled 38.57 billion baht.

However, the index rebounded slightly to 1,292.69 points at close on Wednesday, down 5.10 points or 0.39 per cent. Transactions, meanwhile, totalled 53.41 billion baht.

The index slumped in response to the court’s 5:4 verdict to remove Srettha as the PM, stating in its judgment that he lacked integrity to hold the top government post because of his decision to appoint an unqualified person as one of his Cabinet members.

An analyst at Asia Plus Securities expects Thailand to face only a short-term political vacuum  despite the removal of Srettha.

“Phumtham Wechayachai, the first deputy prime minister and commerce minister, will serve as caretaker PM,” he said. “The Cabinet still remains in charge as caretaker until the House of Representatives votes for a new PM within 45-60 days.”

He did not expect Srettha’s removal to affect government policies due to strong bonds among government coalition parties.