Thai stocks sink to 6-month low as anti-govt protests grow

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SINGAPORE: Thai shares languished at a six-month low on Monday as escalating anti-government protests threatened to further erode investor confidence in the country and heaped further pressure on the region's worst performing stock market this year.

Protests demanding the resignation of Prime Minister Prayuth Chan-ocha and curbs on powers of the monarchy have compounded Thailand's woes in recent months after the coronavirus pandemic ravaged its tourism-reliant economy.

They warned that protracted political protests could further exacerbate the country's tourism sector and that the foreign sell-off in Thai stocks may be higher than usual due to the political worries. Uncertainty over whether U.S. lawmakers can agree on a fiscal package before the Nov. 3 election has weighed on sentiment recently.

Jennifer Lomboy, a fixed income fund manager at First Metro Asset Management, said Congress' timely passage of the budget gives the Senate a two week head start to study the bill before sessions resume in November and reduces the chance of a re-enacted budget.

 

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