More than a third of chief executives at 117 SET-listed companies expect domestic political uncertainty arising from Thailand's general election to take a toll on domestic demand, the capital market and economic growth prospects.
The 117 firms, making up 45% of total market cap, responded to the Stock Exchange of Thailand's latest CEO survey, which was conducted from Jan 17 to March 20.
Some 36% of executives anticipate an adverse impact from the general election on Thailand's macroeconomic outlook, while 35% see a negative effect on domestic demand.
Meanwhile, 38% of executives expect a negative impact to Thailand's capital market from domestic political uncertainty, while 31% predict harm to listed companies' operating results.
Despite a 7% investment return for Thai equities on a year-to-date basis, fund outflows from the local stock market total 9.5 billion baht so far, according to Asia Plus Securities (ASP).
If domestic political developments are unstable, the SET index could experience profit-taking sales next month, ASP said.
The general election was held on March 24. The pro-military Palang Pracharath Party won an estimated 118 constituency and party-list seats, while the Pheu Thai Party leads with 137 seats, based on the latest figures from the Election Commission (EC).
The election results have been marred by controversies. Uncertainty over how the number of MP seats is calculated and doubts over the EC's poll oversight are two of the more contentious issues.
The official poll results will be announced by May 9.
Sectors likely to be hurt by election developments include electronics, insurance, fashion, energy and utilities, according to the survey.
Some 74% of chief executives at SET-listed companies expect Thai GDP to grow by 3-4% in the first half, propelled by public spending and tourism.
