Thai Markets Rattled by Report of Finance Minister’s Resignation

(Bloomberg) -- Thailand’s main stock index dropped and the currency pared gains on a report that Finance Minister Predee Daochai has tendered his resignation weeks after taking office because of ill health.

The benchmark SET index of stocks fell as much as 0.7% before closing 0.4% lower, while the Thai baht pared gains of as much as 0.6% on news of Predee’s resignation to trade 0.1% higher at 31.077 to a U.S. dollar by 4:52 p.m. in Bangkok.

The former banker handed over his resignation letter to Prime Minister Prayuth Chan-Ocha on Tuesday, Thai-language newspaper Khaosod reported, citing an unidentified government official. The prime minister has yet to accept Predee’s request to quit the cabinet, the newspaper said.

Traisulee Traisoranakul, a government spokeswoman, said she was unaware of the minister’s resignation. Predee attended a Cabinet meeting with Prayuth earlier Tuesday.

A former co-president of Kasikornbank Pcl, Predee took office on Aug. 12 as part of several changes Prayuth made to his Cabinet to shape the government’s response to the coronavirus pandemic. Thailand’s tourism and trade reliant economy has been one of the worst-hit globally, projected to shrink by a record of 8.5% this year.

Prayuth will need to soon find a replacement for Predee to ensure a functioning economic team in the government, according to Maria Lapiz, head of research at Maybank Kim Eng Securities (Thailand).

“There is an urgency now for having a well-functioning economics team because many of the ad-hoc programs crafted back in April to cushion the downside from Covid-19 measures are finishing soon,” Lapiz said.

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