July 26, 2008
BANGKOK (AFP) - The Thai stock market is likely to rise slightly next week but domestic political instability will prevent it making greater gains, analysts said Friday.
"The market is likely to move in a narrow range. It may rise slightly but worries about the current politics in the country will play a major role over market sentiment next week," Viriya Lappromrattana, senior vice president at Kiatnakin Securities, told AFP.
Viriya warned that persistent concerns over the constant uncertainty of Thai politics made the index prone to volatility.
"Investors keep watching the progress of the current situation and if no positive news arrives the market sentiment can be dampened," she said.
The Thai government is currently beset with political problems as well as an ongoing dispute with Cambodia over their border where thousands of troops are now stationed.
On Thursday, violent clashes between anti and pro-government protesters in two Thai provinces caused 40 people to be injured.
The Stock Exchange of Thailand (SET) composite index rose 20.95 points or 3.15 percent over the past week to close Friday at 685.47 points.
Viriya forecast the market was likely to pick up to the 700-point level next week.
