The Thai stock market is expected to rise as investors are optimistic of companies releasing positive earnings reports for the second quarter, though domestic political uncertainty will continue to pressure market sentiment, analysts said on Friday.
"The market is likely to rise slightly next week as more earnings reports are expected to come out. We are optimistic," Pichai Lertsupongkit, senior vice president at Thanachart Securities, told AFP. "But worries about the political uncertainty in our country will cause the market to move in a narrow range," he said.
The Thailand government is currently beset by domestic political problems as well as an ongoing border dispute with Cambodia. Thailand's Prime Minister Samak Sundaravej is expected to announce his reshuffled cabinet any day now following legal rulings implicating three serving ministers and forcing three others to resign. The Stock Exchange of Thailand (SET) composite index fell 6.81 points or 0.99 percent over the past week to close Friday at 678.66 points. Pichai said the market was likely to reach the 700-point level next week.