January 19, 2008
BANGKOK (AFP) - Thai share prices are expected to remain volatile next week, as investors wait to hear details of a proposed economic stimulus package to bolster the US economy, dealers said.
"Trading is likely to be rather volatile because investors are still anxious to see if there is anything new and positive from the announcement of the US economic package," said Pichai Lertsupongkit of Thanachart Securities.
"If there is nothing new, the market will remain volatile on sustained fears over a slowdown of the US economy due to the housing loan crisis," he said.
During the past week, US financial giants Citigroup and Merrill Lynch announced massive losses. That heightened fears about an impending recession in the US.
Pichai said investors are also watching for developments in Thailand's domestic politics, as allies of ousted prime minister Thaksin Shinawatra are expected to announce a six-party coalition government.
On Friday evening, the Supreme Court dismissed two major complaints against the December 23 elections won by the People Power Party, which is allied with Thaksin.
For the week to January 18, the Stock Exchange of Thailand composite index fell 6.80 points, or 0.85 percent, to close at 789.67.
Pichai said the Thai market would likely trade between 760 and 820 points next week.
