Thai Stocks Reverse Gains as Opposition Parties Secure Strong Majority in Election

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• A calculation by Reuters based on data from the country’ Election Commission suggests the anti-military Move Forward party, led by Thai businessman Pita Limjaroenrat, would win the most seats, followed by the Pheu Thai party.
• Separately, Thailand’s gross domestic product for the first quarter grew 2.7%% year-on-year, beating expectations of a 2.3% rise.

Thai stocks rose briefly while the Thai baht gave up early gains after momentarily touching a three-month high on Monday. Investors are awaiting more tangible outcomes of Sunday’s general election, after preliminary results showed the country’s pro-democracy parties secured a strong majority.

It remains to be seen which parties will eventually form the new Thai government as a coalition is needed since both opposition parties don’t have enough votes to form a new government.

A calculation by Reuters based on data from the country’s Election Commission suggests the anti-military Move Forward party, led by Thai businessman Pita Limjaroenrat, would win the most seats, followed by the Pheu Thai party.

If confirmed, this would represent a resounding rejection of pro-military parties led by former prime minister Prayut Chan-o-cha, ending nine years of pro-military rule.

Official certification of the results are expected to be finalized within 60 days after the polls close.

The Set Composite Index briefly traded 0.3% higher at the open on Monday before paring gains and was last trading 0.2% lower.

The Thai baht strengthened 0.6% on Monday to 33.73 against the U.S. dollar, its strongest level since February earlier this year.

“We have to bear in mind that there have been a lot of tricky business in Thai politics over the years,” Thitinan Pongsudhirak, professor of politics and international relations at Chulalongkorn University told CNBC’s Sri Jegarajah in Bangkok.

The Set Composite Index briefly traded 0.3% higher at the open on Monday before paring gains and was last trading 0.2% lower.

The Thai baht strengthened 0.6% on Monday to 33.73 against the U.S. dollar, its strongest level since February earlier this year.

“We have to bear in mind that there have been a lot of tricky business in Thai politics over the years,” Thitinan Pongsudhirak, professor of politics and international relations at Chulalongkorn University told CNBC’s Sri Jegarajah in Bangkok.