SET Plunges over 22pts as Political Unrest Put Concerns in Investors Sentiment!

SET Index dropped 22.83 points or 1.85% to 1210.85 points after 27 minutes in the morning session on Monday, October 19, 2020, with a trading value of 6.4 billion baht as uncertainty in political issues concerned investors.

CGS-CIMB Securities expected the Thai stock market to edge lower due to concerns over political issues, but the downside would be limited as the analyst expected a rebound once the index plunged to a certain point. Moreover, the Thai stock market would also receive positive sentiment from the rise in Asia stock markets as well.

 

For months, youth-led protesters have urged the Thai Prime Minister Prayut Chan-o-cha to turn in his resignation, claiming for his inability to administer the country and for his dictator-like actions.

The unrest occurred last week after protesters stepped on the street and marched to the Government House. Thai government announced an emergency decree later that night. Most of the protesters willingly went home, while some stayed. Later, the police force cleared the area and arrested some protesters without violation.

More unrest came on Friday as protesters defied the prohibition of political gathering more than five people and gathered at the center of Bangkok, blocking most of the traffic in the area. The police force with shield and water cannon slowly cleared the area as the gathering was violating the emergency decree and paralyzing traffic in the area. The actions by the police force and the government were criticized as using violence on the protesters.