Thai King's Hospitalization Causes Growing Concern

BANGKOK — Concern over the health of Thailand's 81-year-old King Bhumibol Adulyadej, who has been hospitalized for almost a month, has sparked turmoil in the country's stock market.

Thailand's benchmark stock index rose 1.9 percent at Friday's opening to 705.74, but then slipped to a 0.5 percent gain as morning trading continued. The skittish rebound came after stocks had tumbled more than 7 percent in the previous two days.

Thai school children pray for the health of Thai King Bhumibol Adulyadej during a gathering of well-wishers at a hospital in Bangkok. (Photo: Getty Images)

Bhumibol, the world's longest reigning monarch, was hospitalized Sept. 19 for fever, fatigue and lack of appetite.

The length of the king's hospital stay and the lack of detailed information from the royal palace have created widespread worry about his condition. The health of the revered monarch is an extremely sensitive topic in Thailand in large part because of concerns about his succession.

The palace said late Thursday that the king was able to eat more and that doctors would continue to give him "dietary supplements and physical therapy."

The palace said Wednesday that the king had a lung inflammation, a condition it first mentioned late last month. Lung inflammation can be a symptom of pneumonia, although the palace has not used that term.

The statement said his "general condition is good" but that he would require some time to fully recover "as is the case for the elderly."

Bhumibol's son, Crown Prince Vajiralongkorn, does not yet have the stature or moral authority of his father, who has been a unifying figure for the 63 years he has been head of state.

Adding to nervousness about the future is the political unrest that erupted in 2006, when Prime Minister Thaksin Shinawatra was ousted by a military coup after being accused of corruption. His supporters and opponents continue to vie for power, often taking their case to the streets. Last year, an anti-Thaksin group occupied the prime minister's offices for three months and seized the capital's two airports for a week.

Hit by heavy foreign selling, the Stock Exchange of Thailand's benchmark stock index closed 5.3 percent lower Thursday at 692.72 after earlier diving more than 8 percent. On Wednesday it fell 2 percent, its largest decline in nearly two months.

"The market's skittishness is traceable to the possibility of a destabilizing power vacuum if the monarchy's power diminishes," political risk experts Eurasia Group said in a report.

The secretary-general of Thailand's Securities and Exchange Commission, Teerachai Puwanartnaranuban, said investors "should not panic because of rumors because there is no new information that changes market fundamentals."

He did not specify what the rumors were, reflecting traditional reluctance to comment publicly on the sensitive issue of the king's health.