Thai shares expected to rise on strong banking results

17 Oct, 2005

Thai share prices are likely to rise next week as investors expect the country's major banks to post strong quartterly earnings, analysts said "Investors are focusing on the banks' earning reports. They expect the banks to post strong quarterly profits and the stock market will react positively," said Sukit Udomsirikul, senior strategist at Capital Nomura Securities.
Thailand's third-largest lender, Kasikornbak (KBank), and the fourth-largest lender Siam Commercial Bank are expected to announce their earning results this week.
Sukit said investors might trade with caution as the Bank of Thailand is expected to raise its benchmark interest rate by 0.25-percentage points on Wednesday in a bid to keep inflation in check.
"Investors may take a wait-and-see stance ahead of Wednesday's monetary move but overall the move is already factored in," he said.
Last month the Bank of Thailand raised its benchmark interest rate by a larger-than-expected half a point to 3.25 percent, citing a jump in inflation fed by record oil prices.
If the central bank raises the interest rate again this week, it will mark its sixth rate hike since the beginning of this year.
For the week ending October 14, the Stock Exchange of Thailand (SET) composite index fell 8.96 points, or 1.26 percent, to close at 700.02.
Sukit said the index would likely climb to 715 this week.

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