March 15, 2008
BANGKOK, (AFP) - Thai share prices are expected to be volatile next week amid skyrocketing world oil prices and sustained fears over a US recession, dealers said.
"The market is going to be volatile because of soaring oil prices and ongoing worries over the US economy," said Thanomsak Saharatchai, a senior market analyst at Capital Nomura Securities.
Investors were bracing for the US Federal Reserve's decision on interest rates on Tuesday.
The US central bank's federal funds short-term interest rate is now set at 3.00 percent, and economists expect Fed policymakers to cut rates again next week in a bid to shore up the world's largest economy.
"If the Fed cuts rates drastically, we may see some buying. But we still have major negative factors such as high oil prices," Thanomsak said.
"If oil prices continue to rise like this, we may see panic selling," he said.
Oil prices hovered near record highs after hitting an all-time high of 111.00 dollars per barrel on Thursday amid fevered price speculation on world crude markets.
For the week to March 14, the Stock Exchange of Thailand composite index fell 3.53 points or 0.43 percent to close Friday at 818.04.
Thanomsak said the Thai market could trade betweem the 800- and 840-point level next week.
