Reporters covered the Thai stock market movement on 9 Feb following the election, where the Bhumjaithai Party led by a wide margin over competitors. This eased investor concerns about political uncertainty and raised hopes for a swift government formation with stability. As a result, the Thai stock index rose strongly and continuously throughout the day, closing at 1,400.89 points, up 46.88 points, with trading value exceeding 102.11 billion baht—the highest in 17 months (the previous peak was 104 billion baht on 6 Sep 2024). Foreign investors had a net purchase of 16.535 billion baht.
Mr. Paiboon Nalinthrangkool, president of the Thai Securities Analysts Association, stated that the Thai stock market responded positively to the election results, as the Bhumjaithai Party won first place and is preparing to lead government formation. This significantly eased market concerns over political stability. The party’s vote share exceeded many expectations, adding clarity and simplifying the government formation process, whether by partnering with the Kla Party alone or forming a coalition with Pheu Thai Party, which boosts investor confidence.
A key issue for the market to watch is the economic policy of the new government. During the campaign, Bhumjaithai revealed few details. Despite being a coalition, their large number of MPs increases the likelihood they will oversee key economic ministries, which are crucial factors influencing Thailand’s economic direction and capital markets.
“I believe the new government’s economic team, led by Deputy Prime Minister and Finance Minister Mr. Anek Nitiapinyasap, will pursue cautious fiscal policies. This will increase reliance on capital markets for public investment. Strengthening and improving liquidity in Thailand’s capital market is an urgent task, especially promoting the Thai Individual Savings Account (TISA) program to encourage sustainable savings and investment in the stock market,” he explained.
Other policies must effectively address real issues, particularly structural problems. If the government can concretely advance economic restructuring, it has a strong chance to complete a full four-year term. The main concern remains the current economic challenges. However, if the government forms quickly and economic policies are positive, it is possible for the Thai stock index to reach 1,500 points this year. Foreign capital is expected to return, as the Thai stock market has been declining for three years and political stability risks have clearly eased following this election.
Mr. Assadech Kongsiri, director and managing director of the Stock Exchange of Thailand, said that the new government led by Bhumjaithai will balance short- and long-term problem-solving, continuing policies from the previous administration. It will focus on stimulating the domestic economy, reducing living costs, and supporting purchasing power, which will help bolster overall economic activity.