Thailand’s newly-elected lawmakers endorsed the appointment of a veteran politician as the parliament speaker, marking another important milestone for a coalition of pro-democracy parties seeking to form a new government after sweeping the May election.

Wan Muhamad Noor Matha, 79, a former speaker and leader of the Prachachat Party, was the sole nominee for the speaker’s post. His candidacy was unanimously approved by the new 500-member House of Representatives that held its first sitting on Tuesday.

Wan’s selection as the group’s consensus candidate at the eleventh hour illustrates the challenges ahead for the eight-party alliance led by its prime ministerial candidate Pita Limjaroenrat that was formed after the election. A public dispute between Move Forward and Pheu Thai over the speaker’s position spurred speculation whether it would fall apart before Pita could take a shot at the top job.

Wan is now expected to set a date for holding a vote to select the country’s next leader. Under Thai election rules, the prime minister is elected by at a joint sitting of parliament’s two chambers, including the upper-house Senate.

Although Pita’s coalition commands 312 lawmakers in the lower house, it’s still short of the 376 votes needed to ensure his win. Doubts remain over how the Senate will vote, with many opposing Pita’s bid as he has stuck to a campaign pledge to seek amendments to Article 112 of the criminal code that punishes criticism of the king and other top royals by as much as 15 years in prison.

Pita is also facing a probe by the election body that may lead to his disqualification.

Rounds of Voting

On Tuesday, the 42-year-old Harvard-educated Pita remained upbeat about drawing more support from the Senate, saying his party’s willingness to make compromises on the speaker should send a message to those still undecided on backing him.

“Demonstrating that as a leader I understand when to push aggressively and when to withdraw without losing principles should send a message to the senators,” Pita said.

But the prime ministerial selection is unlikely to be fast or smooth, and multiple rounds of voting may be needed before a clear winner emerges, according to Titipol Phakdeewanich, dean of political science at Ubon Ratchathani University.

“The house speakership doesn’t lend more certainty for the premiership” bid by Pita’s coalition, Titipol said. “It may take a while still before we get a prime minister.”

A long drawn-out government formation may further spook investors in the Thai financial markets. While the nation’s benchmark stock index is the worst performer in Asia this year, the baht is the second-biggest loser in Southeast Asia since the May 14 vote.

Still, the SET Index may rally about 9% in the fourth quarter if a new government is installed without much delay and it unleashes fiscal stimulus to spur sluggish economic growth, according to Investment Analysts Association, a group of local stock analysts.

--With assistance from Pathom Sangwongwanich and Anuchit Nguyen.

(Updates with comment from analyst in sixth paragraph.)