thai investors are pinning their hopes on the general election to revive stocks in asia’s worstperforming market this year as parties across the spectrum promise tens of billions of dollars in economic stimulus the benchmark set index has slumped 64 in 2023 defying expectations that it will repeat a rally seen in the runup to prior elections instead foreign investors have withdrawn nearly 18 billion as thailand’s economic growth outlook lags that of its southeast asian peers with the central bank’s tightening focus a key drag the unfavorable macro backdrop may be offset by optimism following the may 14 election where surveys project opposition parties to win a majority to end nearly a decade of militarybacked rule pheu thai which has an edge over others has promised a cash handout minimumwage hikes and an array of measures to resuscitate the economy “the fiscal stimulus by the new government should further accelerate economic growth fueling corporate earnings growth and share prices” said varorith chirachon executive director at scb asset management co thailand’s largest private money manager “we still maintain our view for share prices to rally” in the previous five elections the set index rallied an average 55 in the three months heading into the polls and posted similar gains in the following month according to kasikorn securities pcl and maybank securities thailand pcl analysts expect strong market reaction this time around if it looks clear that a single party or a stable majority will take control with competing political parties espousing policies that “mostly focus on solving economic problems” the set index will “rally as usual” said therdsak thaveeteeratham an analyst at asia plus securities pcl he sees may as a “good accumulation point” and recommended stocks with promising profit growth such as indorama ventures pcl and bangkok expressway  metro pcl whether any postelection rally will have staying power depends on the country’s growth outlook with an expected boost from chinese tourists offset by a broader slump in global demand the finance ministry lowered its forecast for this year’s economic expansion to 36 from 38 earlier amid weak exports that compares with growth rates of 49 and 56 expected for indonesia and the philippines respectively in bloomberg surveys a lack of clear majority following the election may also lead to an overhang period for thai equities but optimism is prevalent with the election just a few days away with market watchers picking key beneficiaries investors should focus on domesticoriented sectors such as banking commerce and health care which has historically outperformed during the election rally period said nuttachart mekmasin a strategist at trinity securities co “market will react well if there is a scenario that one partygovernment could be formed”