Traditional wisdom dictates that political instability anywhere, but especially in Thailand, can only harm the domestic economy.
Everybody ‘knows’ mass protests in Thailand are likely to lead to disaster for both tourism and inward investment, two golden eggs for the Thai economy.
However, even as protesters blocked Bangkok streets, issued ultimatums to authorities and performed their now-infamous blood-pouring rituals, the Thai stock market was booming.
On Wednesday, the SET (Thailand’s main stock-market indicator) closed up 2.36% to hit a near-two-year high of 752.20 points, on heavy buying from foreign investors. Thursday’s trading saw another solid day of gains.
Four days of steady progress on the Thai stock market.
At the same time, Thailand’s private sector continues to voice concerns that the continuing strength of the Thai baht is damaging business for Thai exporters.
Today? Even as the UDD protest seems to be withering, calls for a truce are expanding and life is pretty well back to normal, the market has pulled back. Go figure…
Bangkok Rally Backgrounder.
Some background on what has led to the political demonstrations in Bangkok this week was covered in this post.
