Thai stocks plummet as court says PM should step down

The electronic stock board at the Asia Plus Securities Pcl headquarters in Bangkok, Thailand.
Dario Pignatelli | Bloomberg | Getty Images

Thai stocks hit their lowest level in almost one month Wednesday on renewed concerns about political turmoil after a court ruling that Prime Minister Yingluck Shinawatra has violated the constitution and could no longer serve as caretaker premier.

Read MoreThai court says prime minister must step down

Thailand's benchmark stock index fell to as low as 1,388 before trimming falls, while the Thai baht dipped slightly to 32.36 per dollar.

According to the court ruling, Yingluck had abused her position by transferring the country's National Security Council chief to another post in 2011 so that a relative could benefit from related job moves.

"This exacerbates things to a degree because the market seemed, if not unhappy, comfortable with the political situation," said Tim Condon, head of research for Asia at ING Financial Markets in Singapore.

"This raises the likelihood of political violence and increases uncertainty for investors – that is the bottom line here," he added.

Thailand has been rocked by political turmoil for months now, although recent weeks have seen relative calm in the capital Bangkok.

Yingluck's removal from power is expected to bring her supporters into the streets in protest.

Over the past year, Thailand's stock index has shed about 11 percent of its value, underperforming its peers in Southeast Asia.