Thai share prices are expected to fall this week due to uncertainty over the direction of US interest rates, with investors trading with caution over the kingdom's inflation, dealers said.
"We may continue to face selling pressure from foreign investors due to confusion over US interest rates," said Thanomsak Saharatchai, a market analyst at Capital Nomura Securities.
Over the past week, investors dumped shares amid fears that the Federal Reserve would further raise interest rates, triggering worries over a slowdown in the world's biggest economy.
Although the Thai market rebounded Friday as the revised US GDP data in the first quarter eased concern over rate hikes, Thanomsak said investors remained confused over the course of US interest rates.
Investors would also trade with caution as Thailand was to release its May inflation report on Thursday.
Thailand's inflation in April rose to a seven-month high of 6.0 percent due to high oil prices.
For the week to May 26, the Stock Exchange of Thailand composite index dropped 28.83 points or 3.9 percent to close at 717.50.
Thanomsak said the market was expected to trade around the 680.00-point level this week.
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