July 19, 2008
BANGKOK (AFP) - The Thai stock market will slide further next week as investors watch political developments closely, analysts predicted Friday.
Negative pressure from both inside and outside the country was impacting the Thai stock market with the US economic slowdown and domestic political tensions, they said.
"I expect the index to continue to slide because of the pending cabinet reshuffle and many significant court verdicts due a week later. Investors would rather leave the market," Kosin Sripaiboon, chief analyst at UOB Kay Hian Securities, said.
Kosin said the index would be extremely volatile throughout the week as foreign investors, who have already sold 78 billion baht (2.34 billion dollars) on the exchange since the beginning of the year, will continue to flee the market.
"The index could fall as low as the 645-650-point mark," he said.
Kitti Hamnilrat of Ayudhya Securities predicted bargain hunting in the banking sector, which is due to announce its second quarter earnings, that may offset selloffs in the energy sector.
"The market is rather full of negative factors with the absence of good news so next week I think the index may oscillate up and down with short lived rebounds," Kitti said.
The Stock Exchange of Thailand (SET) composite index plunged 65.77 points or 9.0 percent over the past week to close Friday at 664.52 points, the lowest since February 1, 2007.
