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According to Mitul Kotecha, senior emerging markets strategist at TD Securities, Thailand’s partial election results have sowed uncertainty and confusion as the pro-military faction is pitted against various opposition parties.

Key Quotes

“The final result is scheduled to be announced on May 9, but with 95% of votes counted the Pheu Thai party has won the most seats.”

“Both sides have said they will attempt to form a government, but the odds favour a reinstatement of pro-military Prime-Minister Prayuth.”

“The markets’ initial sanguine reaction is likely to give way to uncertainty, with portfolio inflows already weakening ahead of elections.”

“THB outperformance is unlikely to continue, with the currency likely to lag other Asian FX versus USD.”