The Federation of Thai Capital Market Organisations (Fetco) is scheduled to meet with four leading political parties to inquire about party policies on capital market development and initiatives to support long-term growth.
Chairman Paiboon Nalinthrangkurn said Fetco has three main queries for the four parties to clarify their ideas on bolstering Thailand's capital market development.
Fetco will begin its talks on Monday with the Democrat Party, as it was the first to accept the invitation. Later talks will welcome the Pheu Thai, Palang Pracharath and Bhumjaithai parties.
The first question Fetco will pose is how each party will enhance long-term savings among Thais, as the country will be categorised as an aged society over the next decade. The federation will also ask about the draft of the National Pension Fund, which has yet to become effective under the incumbent government, as retirement savings is a critical issue for both the ageing population and Thailand as a whole.
The second question is how each political party will support 5G business operations and financial technology or ideas to clear impediments to doing business.
The last point is about how the government can work closely with capital market representatives to share information and synergise their work to support long-term savings, investment and financial literacy.
Domestic political risk, meanwhile, is rising and has taken a toll on market sentiment. After the Feb 8 incident in which the Thai Raksa Chart Party nominated Princess Ubolratana as the party's sole prime ministerial candidate, the Election Commission filed a petition with the Constitutional Court for the party's dissolution.
Such developments have prompted foreign investors to sell Thai equities, with the Stock Exchange of Thailand (SET) index gradually moving sideways down.
"But I think this is a short-term panic," Mr Paiboon said. "The only issue that can spark a down trend in Thai equities is chaotic political protests and further delays to the general election. Such scenarios are unlikely to happen because the army can still maintain internal security, while political parties and the government do not want to postpone the election, and the latter seems to be at an advantage."
It's been widely discussed that the pro-junta Palang Pracharath Party has the upper hand because of the appointed Senate and the military-drafted election laws.
"I believe that everything will be better after March," Mr Paiboon said. "We will see a clearer picture [of Thai politics] and 2019 is expected to be a good year for the Thai stock market. The SET's climb will depend on developments on the external front and domestic politics. The elected party who will form a new government, the new prime minister and stability of the new administration are factors influencing the bourse's movement."
Notable external headwinds include China's economic slowdown, the Sino-US trade spat and Brexit negotiations, he said.
