Thai stocks are expected to move marginally next week amid profit-taking, while energy and petrochemical stocks are likely to shore up trading with their bright earning outlooks, dealers said.
"Selling of bank and telecommunication stocks are likely to continue next week as investors expected poor earning results in the second quarter," said Mayuree Chaowikran, a senior market analysts at Siam City Securities.
"Meanwhile, energy-linked stocks which made up 30 percent of the Thai bourse, are likely to hold firm as earning prospects remain strong," she said.
Investors would also keep a close eye on the Bank of Japan's meeting on Wednesday, when it is expected to keep interest rates unchanged. "The Japanese economy has yet to reach the level that would prompt the BOJ to raise rates in order to cool it down," said Mayuree.
"But if the bank hikes rates, there are concerns of a possible sell-off across Asia to adjust investors' portfolios," she added. She said investors would still trade cautiously to wait for an expected interest rate cut when the Bank of Thailand meets again on May 23.
Business leaders have called on the central bank to cut interest rates more aggressively to stimulate flagging domestic consumption and the slowing economy, which has been hit by post-coup political worries.
The Bank of Thailand last month lowered its key interest rate by a half-point to 4.0 percent, but the finance minister on Friday called for slashing the rate further.
The bank recently revised down its economic growth forecast for this year to 3.8-4.8 percent from 4.0-5.0 percent seen earlier. Analysts estimated interest rates could be further cut to 3.0 percent by the end of the year.
For the week to May 11, the Stock Exchange of Thailand composite index fell 9.54 points or 1.3 percent to close at 706.90. Mayuree said the market would likely trade between 700 and 710 points next week.
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