BANGKOK, 23 May 2014 – After the Royal Thai Army’s announcement of a coup late afternoon yesterday (22nd May 2014), the benchmark of the Stock Exchange of Thailand (SET) Index, closed up 0.2 percent to 1,405.21. This was in contrast to its fall of 1.2 percent earlier this week when martial-law was first declared. Analysts are expecting a sell off today.
According to the exchange data, since the May 20th declaration of martial law, overseas investors had pulled US$408 million out of Thai stocks, sending the SET Index benchmark down 0.7 percent this month.
The country’s gross domestic product (GDP) had already contracted 0.6 percent in the first quarter compared to the same period last year and the bank further lowered its 2014 growth forecast to 1.3% from 2.2%, amid the political protests. and violence that has resulted in more than two dozen deaths.
Another development that is threatening the country’s economic growth is the weakening of Thailand’s US$35 billion tourist industry, which contributes 9 percent to the country’s GDP, as many countries in the world have issued warnings for their citizens to exercise a high degree of caution when entering the kingdom.
However after the prolonged political unrest that has seemed to worsen every day, many sides hope that this coup will be the silver lining for Thailand’s resolution of disputes.
