January 5, 2008
BANGKOK (AFP) - Thai share prices are expected to trade narrowly next week amid sustained worries over a recession in the US economy, dealers said.
"Sentiment is likely to remain weak as investors continue to worry about the housing loan crisis and a possible recession" in the US economy, said Chai Chirasevenupraphand, a market strategist at Capital Nomura Securities.
Apart from the US factor, the Thai bourse is likely to face pressure due to political uncertainty at home, Chai said.
Thailand's Supreme Court on Friday agreed to consider a case accusing the People Power Party, which won December elections, of being a proxy of ousted premier Thaksin Shinawatra.
The decision could jeopardise the future of the PPP -- made up of former members of Thaksin's dissolved Thai Rak Thai (TRT) party -- as it was preparing to launch a coalition government.
Thailand's election commission also said Thursday it was investigating 65 poll winners from the PPP for alleged electoral fraud -- potentially hitting its seat tally.
"Uncertainty over whether the PPP can form a coalition government is a very negative factor, and we may see some selling from foreign investors," Chai said.
For the week to January 4, the Stock Exchange of Thailand composite index fell 36.39 points, or 4.2 percent, to close at 821.71.
Chai said the Thai market would likely trade between the 820 and 840-point level next week.
