TOPSHOT – Thailand’s Prime Minister Paetongtarn Shinawatra, known by her nickname “Ung Ing” and … More
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Thai stocks and the baht gained Tuesday as the Constitutional Court’s move to suspend Prime Minister Paetongtarn Shinawatra from her duties sparked optimism that the ongoing political tensions in the Southeast Asia nation would subside.
In a blow to her less-than one-year old government, the court temporarily suspended Paetongtarn’s powers as it considers a petition from a group of senators seeking to oust her. The petitioners allege that the comments she made criticizing a Thai army commander during a call with former Cambodian leader Hun Sen (a recording of which was leaked to the media) violates ethical standards that could disqualify her as Prime Minister.
Paetongtarn—the youngest daughter of influential former premier Thaksin Shinawatra—has resisted calls for her to resign over the politically sensitive leaked phone call, in which she criticized the Thai army’s role in a border standoff with Cambodia. The issue has triggered widespread public anger with thousands mounting street protests in Bangkok over the weekend.
“Previously, the market was unnerved by fears of potential violence or even military intervention,” said Piriyapon Kongvanich, investment strategist at Bualuang Securities in Bangkok. “The court’s decision defused those fears and the market reacted positively.”
The benchmark Thai stock index rose 1.4% to 1,104.58 as of 4:30 pm in Bangkok. The Thai baht gained 0.3% against the greenback.
Thai stocks are also rebounding after slumping more than 20% this year amid concerns over a deteriorating economic outlook and escalating domestic political tensions.
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“The current valuation is considered a bargain and some investors just took this opportunity to enter the market,” said Wijit Arayapisit, strategist at Bangkok-based Liberator Securities.