Baht gains as Thailand’s pro-growth Move Forward leads vote, tycoon-linked stocks drop
- The currency rose as much as 0.9 per cent against the dollar, with investors upbeat that a coalition government led by the Move Forward Party will be pro-growth
- Move Forward party wants to end business monopolies and promote growth outside the capital Bangkok
The Thai baht rallied after pro-democracy parties emerged as the biggest winners in Sunday’s election, while stocks linked to some of the nation’s billionaires fell on concern that a new government will introduce more industry competition.
The currency rose as much as 0.9 per cent against the dollar, with investors betting that a coalition government led by the Move Forward Party – the leader in the polls – will be pro-growth.
The benchmark SET Index though fell 1.3 per cent, the most since April 5, as the winner has pledged to usher in more competition in sectors such as telecoms and power.
Pita Limjaroenrat, the head of the Move Forward Party, is seeking a mandate to serve as Thailand’s new prime minister as he reached out to five parties for support.
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Should he succeed, he will replace the military-backed government of Prime Minister Prayuth Chan-ocha, who took power in a 2014 coup. Pita’s party wants to end business monopolies and promote growth outside the capital Bangkok.