Thai shares are expected to rise slightly in the coming week on easing political tensions and anticipated positive bank earnings results, an analyst said Friday. The Thai bourse has been in decline chiefly due to political instability over the past month, with the government facing a number of legal challenges and protests on the streets of Bangkok.
The market has lost 15 percent since thousands of anti-government demonstrators began to rally late May. During the week Prime Minister Samak Sundaravej's government lost a string of court cases that forced three top officials to leave office in less than 48 hours.
Samak himself is under investigation for alleged corruption, while his People Power Party could be dissolved over vote fraud claims. "The market is likely to rise next week as political tension has eased. Investors also expect to hear positive earnings reports from the banks which will begin to be released late next week," said Kavee Chukitkasem, assistant managing director at Kasikorn Securities.
Kavee warned that concern over high inflation, which could lead the central bank to raise interest rates next Wednesday, would continue to dampen sentiment. The Stock Exchange of Thailand composite index lost 12.74 points or 1.71 percent over the past week to close Friday at 730.29. Kavee said the market was likely to pick up to the 735-point level next week.
Comments
Comments are closed.