The military action has also driven away tourism, which accounts for 16.7% of the Thailand’s GDP.
Additionally, some argue that valuations are looking pricey. The equity’s index’ price-to-earnings ratio is about 16% above its five-year average. Sukit Udomsirikul, the head of research at Maybank Kim Eng, argues that any upside will be limited as the economy won’t experience high growth until next year.
“We advised clients to begin reducing their holdings to lock in profit,” Chaiyaporn Nompitakcharoen, a strategist at Bualuang, said in the Bangkok Post article. “Share prices have gotten too far ahead of earnings and entered overbought territory.”
iShares MSCI Thailand Capped ETF
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Max Chen contributed to this article.