Bangkok, April 12: Thai stocks are expected to fall on Monday after 21 people died and hundreds were injured in clashes between troops and anti-government protesters in Bangkok at the weekend.
Analysts said the stock market, one of Asia’s most buoyant this year, was likely to take a hit before it closes for the three-day Songkran holiday from Tuesday.
Prapas Tonpibulsak, chief investment officer of Ayudhya Fund Management, expected the market to fall up to 10 percent in the near term — not necessarily all on Monday — in reaction to the events.
“It’s going to hurt stock market sentiment for sure because the scale of the clashes is beyond expectations. Tourism and related businesses will be the first to be hit,” he said.
The fighting, the worst political violence in the country in 18 years and some of it in well-known Bangkok tourist areas, ended after security forces pulled back late on Saturday. Bangkok was calm on Sunday and on Monday morning.
On Friday, Thai stocks .SETI ended 0.7 percent higher at 789.66, recouping losses after prominent emerging market fund manager Mark Mobius recommended the market despite the rise in tension, at a time when the protests were still largely peaceful.
Foreign investors were net sellers of 1.76 billion baht ($54.6 million) of stock on Friday, their second straight day of net selling, reducing their purchases since February 22 to 55.73 billion baht ($1.73 billion).
The recent foreign buying of Thai stocks was spurred by cheap valuations and a recovery in the economy.
—Agencies