Thai Assets Underperform Amid Further Political Uncertainty

Thailand related assets underperformed late yesterday. The SET equity index finished down 1.37% (now back close to recent support near ~1520), while offshore investors sold -$84.7mn of local equities. Outflows were also evident from local bonds, -$232.2mn. USD/THB finished just off session highs, 34.64 (highs were at 34.68). Fresh political uncertainty weighed.

• Today's parliamentary vote for PM was abruptly cancelled yesterday by parliament president Wan Muhamad Noor Matha (see this link). This was due to the Constitutional Court not yet ruling on complaints about Pita's rejected nomination. It is expected to make a decision on August 16.
• This has also resulted in the Pheu Thai Party delaying the announcement of its new coalition, which was meant to take place yesterday.
• Still, Pheu Thai Party deputy leader Phumtham Wechayachai expressed confidence that the party will manage to install its candidate Srettha Thavisin as Prime Minister, adding that the vote may take place one week after the Constitutional Court issues its ruling on Move Forward Party leader Pita Limjaroenrat's re-nomination.
• Today's parliament is also due to debate a constitutional amendment tabled by the MFP, which would remove the Senate's role in electing Prime Minister. There have been calls for postponing the debate until after the PM vote, while the amendment itself is expected to fail (see this link).