According to Mitul Kotecha, senior emerging markets strategist at TD Securities, Thailand’s partial election results have sowed uncertainty and confusion as the pro-military faction is pitted against various opposition parties.
“The final result is scheduled to be announced on May 9, but with 95% of votes counted the Pheu Thai party has won the most seats.”
“Both sides have said they will attempt to form a government, but the odds favour a reinstatement of pro-military Prime-Minister Prayuth.”
“The markets' initial sanguine reaction is likely to give way to uncertainty, with portfolio inflows already weakening ahead of elections.”
“THB outperformance is unlikely to continue, with the currency likely to lag other Asian FX versus USD.”
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