February 23, 2008
BANGKOK (AFP) - Thai share prices are likely to rise next week as investors expect good news from corporate earnings reports over the course of the week, dealers said Friday.
"Investors expect to see further presentations of profits from shares of companies that will come out next week," said Ronnakrit Sarinwong, executive vice president at Adkinson Securities.
Ronnakrit said that investors were already chasing gains in the construction and property sectors, and that other companies were expected to have good news as well.
"But the market is likely to remain volatile next week, as long as fears over a recession in the US economy continue," he said.
The Thai economy remains sluggish with inflation at 4.3 percent in January. New Prime Minister Samak Sundaravej has vowed to boost the economy with an enormous surge in government spending, including an ambitious overhaul of the nation's transport system.
Lifting the economy is one of the top priorities for the Samak government, and local business leaders have called for tax cuts as well as help for small- and mid-sized companies.
Finance Minister Surapong Suebwonglee and central bank governor Tarisa Watanagase have also met to consider ending stringent currency controls, but have so far failed to reach an agreement.
For the week to February 22, the Stock Exchange of Thailand composite index edged down only 0.21 points from last Friday to close at 826.86.
Ronnakrit said the Thai market would likely rise to the 840-point level next week.
