Thailand’s domestic investors are snapping up the nation’s beaten down equities, betting that the months long political standoff will be resolved soon.
The benchmark stock index has rallied more than 4% from a June 28 trough, and may extend if a government takes office soon, according to analysts. While the SET gauge is still Asia’s worst-performing equity market this year, the recent performance outpaced a 1.6% gain in the broader regional gauge.
The gains indicate that investors in Thailand expect a government can be formed after months of wrangling between pro-democracy parties and a military-backed Senate. Global funds have sold $3.7 billion of the nation’s equities this year, even as economists project a third year of economic growth and rebounding tourist arrivals.
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