Thai share prices are expected to trade in a narrow range next week as investors have resigned themselves to a further hike in US interest rates later this month, dealers said.
"The market will trade sideways as investors widely expect rate hikes" when the US Federal Reserve will hold a rate-setting meeting on June 28-29, said Sukhbir Khanijoh, a senior market analyst at Trinity Securities.
Fears over the prospect of rising US interest rates and its impact on the world's biggest economy had sent the global market into a tailspin.
The analyst added the broader market would be kept in check due to Thailand's political uncertainty over the leadership of Prime Minister Thaksin Shinawatra, who has been accused of abuse of power and corruption.
Thaksin, the target of months of street protests, Wednesday urged his rivals not to resume street demonstrations following a week of celebrations honouring King Bhumibol Adulyadej's 60th year on the throne.
He called snap elections on April 2 in a bid to silence his critics but the results proved inconclusive and the courts have invalidated the polls. New elections are set for October 15. For the week to June 19, the Stock Exchange of Thailand composite index fell 5.02 points or 0.75 percent to close at 665.39.
Sukhbir said the market was expected to trade around the 670.00-680.00 point range next week.
Comments
Comments are closed.