Thai shares tipped for uncertain performance

18 Jul, 2005

Thai shares were tipped to have an uncertain performance this week, as investors watched what the central bank decides for Thai interest rates, analysts said.
The Bank of Thailand's Monetary Policy Committee meets on Wednesday and is expected to raise interest rates another 0.25 percent to attract capital flow and boost the Thai baht.
When the committee last met on June 9, it raised its key 14-day repurchase rate by 25 basis points to 2.50 percent in an effort to head off increasing inflation risks. Thai inflation hit 3.8 percent in June, a six-year high. "At the same time, oil prices, the baht and the situation in the south of Thailand will remain the important factors," Klangjai Juisiri, a senior researcher at Kasikorn Research Center said.
The Stock Exchange of Thailand (SET) composite index gained 12.15 points or 1.88 percent over past week to close Friday 655.46.

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