Stocks of “Well-known Families” Rising

From Arun, August 26, 2014
Headline: Stocks of “Well-known Families” rising upon speculation on new cabinet; Brokers said ‘construction group’ sees bright future
Above building: Government House

[This reflects the reality that in nations headed by strongmen–such as when Mahathir was Malaysian PM, when Thaksin was Thai PM, and now when Gen. Prayuth holds absolute control of Thailand–stock exchanges watch for associations with these men as a sign of share value. The reasoning is that the personal associations and whims of the top man confer special benefits on well-connected companies.
Stockbrokers coined the phrase “Thaksin premium” to highlight how companies whose leaders were seen to be close to the then PM–for instance, those seen golfing with Thaksin–were particularly lucky in terms of business opportunities and beneficial regulations.
It will be interesting to see which business leaders become associated with the junta chief and if they will reap any special benefits from their associations.]

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