Supavud Saicheua, a managing director of Phatra Securities, said that to keep investor confidence, a government needed to be established quickly.

He noted that every government headed by a party led by or allied with Mr. Thaksin had experienced problems. Thaksin himself was narrowly cleared by the Supreme Court in 2001 of incorrectly declaring his assets. "We have to keep an eye on Yingluck Shinawatra, who was accused of providing false information about her shareholding in Shin Corporation. We should be prepared if this party is forced to dissolve in the future," said Dr. Supavud.

The market would also monitor the new government's economic policies, as excessive state spending may derail long-term growth, driving inflation and forcing up interest rates. This would result in higher operating costs for businesses, cutting growth, he said.

Investors' sentiment is likely to remain upbeat in the short term, but they will be eager to see who the new cabinet ministers are, he added.