January 12, 2008
BANGKOK - Thai share prices are expected to be volatile next week as investors brace for poor earning results by US financial giants amid growing fears over the state of the US economy, a dealer said.
"Trading is likely to be very volatile as investors are worried about bad US earning reports due to the housing loan crisis," said Mayuree Chowvikran, vice president of Siam City Securities.
"Poor earning results will confirm fears about a looming recession in the US economy, and we expect heavy selling next week," she said.
US financial giants Citigroup and Merrill Lynch are scheduled to announce their earnings next week, and investors expect massive losses arising from the US housing loan crisis, according to AFP.
Apart from the US factor, Mayuree said investors would likely stay on the sidelines ahead of the Bank of Thailand's rate-setting meeting on Wednesday.
Market players have forecast the central bank will keep its key interest rate unchanged at 3.25 percent.
Investors would also trade with caution, awaiting next week's details of a pipeline deal between the government and the kingdom's energy giant PTT, the analyst added.
PTT is the largest stock on the Thai bourse with a market capitalisation of 1.01 trillion baht (30 billion dollars).
For the week to January 11, the Stock Exchange of Thailand composite index fell 25.24 points, or 3.07 percent, to close at 796.47.
Mayuree said the Thai market would likely trade between the 770 and 810-point level next week.
