Thai share prices are likely to rise as investors hope that the kingdom's new government will introduce stimulus measures to shore up the economy, a dealer said on Friday.
Thailand's Finance Minister Surapong Suebwonglee is to meet the central bank next week to map out economic plans for the new government, which replaced the army-installed cabinet.
"Hopes are high as investors are awaiting the meeting between the finance ministry and the Bank of Thailand next week," said Chai Chirasevenupraphand, a senior market analyst at Capital Nomura Securities. Investors are expecting Surapong to launch a stimulus package aimed at boosting the Thai economy, which grew just 4.8 percent last year, ranking among the lowest in Southeast Asia.
"Market sentiment is currently in a honeymoon period. Investors are taking a wait-and-see approach" but they were hopeful about the economic package, Chai said.
Surapong, one of the closest allies of deposed premier Thaksin Shinawatra, took office on Wednesday. Boosting the economy is one of the top priorities for the new government, with business leaders calling for measures ranging from tax cuts to assistance for small and mid-sized businesses. For the week to February 8, the Stock Exchange of Thailand composite index fell 4.42 points or 0.54 percent to close at 806.44. Chai said the Thailand market would likely rise the to 820-point level.
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