Thai share prices are expected to be range-bound in the coming holiday-shortened week, with investors seen cautious following Prime Minister Thaksin Shinawatra's surprise announcement to resign, dealers said.
"The market will likely stay firm but trade in a limited range because we only have three trading days next week," said Kanang Duangmanee, a senior economist at Kasikorn Research Center.
Thailand next week celebrates Buddhist New Year, a nation-wide water festival, with the market to close on Thursday and Friday. Trading will resume on April 17.
Investors will focus on the Bank of Thailand's policy board meeting on Monday amid expectations that the central bank will likely raise its key interest rate by a quarter of a point to 4.75 percent, Kanang said.
But she added political uncertainty following Thaksin's announcement would continue to trim gains in the market.
Thaksin chose his top deputy Chidchai Vanasathidya to take the reins of government while he takes a "political break", while Commerce Minister Somkid Jatusripitak has appeared as the top candidate to replace Thaksin.
Anti-Thaksin protesters who led two months of demonstrations against him held a new rally Friday to demand that he leave politics entirely.
For the week to April 7, the Stock Exchange of Thailand composite index jumped 37.08 points or 5.1 percent to close at 770.33.
Kanang said the market was expected to trade around the 765.00-780.00 point range next week.
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