Thailand's stock market bull run may be over, with analysts predicting volatility and a further correction despite the fact that no negative news is expected next week. The Stock Exchange of Thailand (SET) index rose 6.20 points or 1.17 percent over the past week to close Friday at 533.92 points.
"There are hardly any negative factors expected next week, but I think the index and trading volume will decrease since the highs already happened last week," said Kosin Sripaiboon, analyst at UOB Kay Hian Securities (Thailand).
He said the index would move in response to data on the United States economy early next week. But local factors appeared to be positive, including an expected further interest rate cut - by 25 basis points to 1.00 percent - by the Bank of Thailand's Monetary Policy Committee on Wednesday.
The commerce ministry is also expected to announce that April's export figures improved compared with the previous month. Kosin estimated that the index would move between 545 and 520 points.
But another analyst warned that political factors may worry investors after supporters of ousted former premier Thaksin Shinawatra said they would hold further protests against current Prime Minister Abhisit Vejjajiva. "It will take time for foreign investors to be fully confident in our market, even though Prime Minister Abhisit is
on a roadshow trip to Hong Kong" this week, Teerada Chanyingyong of Phillip Securities said. "But our political situation is still full of uncertainties," she said.