Shares of companies linked to a billionaire politician who campaigned in Thailand’s election on a pledge to legalize marijuana on Monday leaped after partial results suggested that his party could be a key part of a coalition government.
Results from Sunday’s election showed that a pro-military party and an opposition party linked to the army’s nemesis, self-exiled former Thai prime minister Thaksin Shinawatra, had won the largest share of parliament seats announced so far.
However, both the pro-army Palang Pracharat and the opposition Pheu Thai could seek support from Anutin Charnvirakul’s Bhumjaithai (“Proud to Be Thai”) Party to cobble together a majority of parliamentary seats needed to form a coalition government.
Photo: EPA-EFE
The Bhumjaithai Party won 39 of 350 lower house seats already decided. The winners of a further 150 seats, which were contested according to a system similar to proportional representation, might not be known before May 9.
Anutin, an amateur pilot, could be a compromise candidate for prime minister if neither of the two leading parties can form a government, and members of his party could receive influential ministry portfolios.
Sino-Thai Engineering and Construction PCL shares closed up 3 percent and steelmaker STP&I PCL rose 2.5 percent.
They bucked the Thai index, which closed down 1.2 percent on concerns that the election would be inconclusive and a broader regional decline.
Anutin holds a 10 percent stake in STP&I and is the former president of Sino-Thai Engineering and Construction.
“This is all knee-jerk reaction,” said Maria Lapiz, head of institutional research at Maybank Kim Eng Securities Thailand, adding that Sino-Thai’s balance sheets were already strong and would not be affected by the outcome of the election.
Anutin, which also backs a four-day work week and legalizing ride-hailing, was part of a previous Thaksin-led government, but is also seen as close to the junta that took over after a 2014 military coup.
Last year, Thai Prime Minister Prayuth Chan-ocha visited Buriram Province, Bhumjaithai’s stronghold, where thousands of supporters filled a stadium to welcome him.
In October last year, ride-hailing start-up Grab launched a program in Buriram to support the local economy.
Shares in Thaksin-linked companies fell on Monday amid concerns that Pheu Thai had fared worse than expected in the election. Real-estate developer SC Asset PCL closed down more than 5 percent and Praram 9 Hospital Pcl lost 2.7 percent.
Thaksin’s daughters hold a majority stake in SC Asset, while his ex-wife, Potjaman Damapong, holds 37 percent of Praram 9 Hospital.
However, analysts said that the luxury condo and hospital sectors are not likely to be affected by the political changes ahead.
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