An exchange traded fund tracking Thailand has fallen along with global stocks but is trying to make a stand at its 200-day moving average.
Yingluck Shinawatra, Thailand’s new prime minster, has selected her cabinet, International Business Times reported. The former deputy governor of the Bank of Thailand was named finance minister, while former stock market president Kittirat Na Ranong assumed the role of commerce minister, according to the report.
The iShares MSCI Thailand (NYSEArca: THD) remains in positive territory for 2011 with a roughly 4% gain.
The historic election marks the end of the Abhisit Vejjajiva regime, which was marked by internal strife. [ETF Spotlight: Thailand]
After the Thai elections the overall market consensus for the Bank of Thailand’s policy rate was revised higher to 3.75-4%, due to the minimum wage rate hike and added inflationary pressure, reports WSJ.com. However, external irritants to Thailand’s growth and stability are the European debt crisis, U.S. debt ceiling decision and the outlook for U.S. growth, which must be dealt with before Thailand’s economy can move ahead. [Asia ETF Industry Grows as Economies Heat Up.]
Analysts say that Yingluck will continue the populist economic policies in the country. Market reforms that will better the standard of living in Thailand are also favored, and nurturing relations with Cambodia is high priority, reports Pavin Chachavalpongpun for WSJ.