BANGKOK, 6 August 2013 The business sector has indicated that a short-term political protest in Bangkok would not have much effects on the financial market but a prolonged rally may yield severe effects.
Part of the Thai baht’s depreciation has been attributed to the concerns over the ongoing political situation. The Bank of Thailand indicates it has not yet detected abnormal outflows of capital, but noted that prolonged protests will have an impact on consumer and investor confidence in the country.
Meanwhile, the Federation of Thai Industries views that the political demonstrations have not had effects on the industrial sector so far, although the rallies have caused significant concerns for business operators. However, it noted that a prolonged situation will cause investments to slow down and have notable effects on the trade and tourism sector, as well as businesses in the Lumphini area.
Thoedsak Thawithiratham, senior director at Asia Plus Securities, indicates that the Thai stock index has declined 110 points since the issue of amnesty bill deliberation came into being, but if the situation resolves, the index would likely rebound.
