March 21, 2008
BANGKOK - Thai share prices are likely to be volatile next week as investors remain fearful of a recession in the United States, dealers said.
"The market is going to be volatile due mainly to ongoing fears over the US economy," said Pichai Lertsupongkit, senior vice president at Thanachart Securities.
The Thai market is expected to continue to track other regional markets, where movements have been driven by investors' sentiments on the US, he said.
"If there is any positive news from the US market and global financial institutions, we can expect the market to rise. But we can expect the opposite if investors hear any negative news coming, like Bear Stearns," he said.
During the past week, the fall of 85-year-old investment bank Bear Stearns sparked more fears of a US recession.
JP Morgan Chase struck a deal to save the bank by agreeing to buy Bear Stearns shares at only two dollars a share, far lower than its market price. For the week to March 21, the Stock Exchange of Thailand composite index fell 14.72 points or 1.79 percent to close at 803.32.
Pichai said the market could trade up to the 810-point level next week.
