Outlook for Thai shares hinges on anti-junta protests

18 Jun, 2007

The movement of Thai share prices next week hangs on the outcome of weekend anti-junta protests amid worries over tensions between the military and ousted premier Thaksin Shinawatra, dealers said.
Thaksin's allies and various pro-democracy groups will stage major rallies on Friday and Saturday to demand the junta's ouster. Thaksin, who has remained in exile since the military overthrew his government in September 2006, is expected to deliver a live video address Friday to thousands of his supporters at the rally in central Bangkok.
"The outlook of the Thai market really depends on the weekend protests, as investors are worried over violent incidents during the protests," said Kanang Duangmanee, an economist at Kasikorn Research Centre.
Although the nightly rallies have remained small, drawing at most 13,000 people according to police, the movement has spooked the military, which has held almost daily meetings to discuss how to handle the situation. So far, there were no reports of violence in past protests. For the week to June 15, the Stock Exchange of Thailand composite index fell 7.75 points or 1.03 percent to close at 744.25.

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